Globe closed on an additional P1.16-B in tower sales

Globe Telecom [GLO 1768.00, up 0.7%; 129% avgVol] [link], the Zobel Family’s telecommunications company, disclosed that it closed on the sale of another 91 cell towers to Frontier Towers to raise approximately P1.16 billion in cash. This is the 13th batch of towers that GLO has closed on since signing agreements with MIESCOR Infrastructure and Frontire Tower Associates to sell 5,709 of its cell towers for an approximate total of P71 billion. GLO has now closed on 65% of the towers sold to Frontier Tower Associates, and 64% of the total towers sold between all buyers.

MB bottom-line: I have nothing but love for this move that allows GLO to monetize these mature assets and get their continued upkeep and maintenance off of its books. Sure, they’re still paying for that maintenance through the lease agreements with the buyers (the sales are part of a sale/leaseback scheme), but I’m sure shareholders would rather GLO focus on what’s coming next rather than spend all that time dealing with parts, trucks, and technicians across nearly 6000 cell tower sites all over the country. What’s coming next? I mean, that’s the trillion peso question, isn’t it? 

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