Globe closes initial tower sale to Frontier; inks third deal with Phil-Tower

27 Sep 2022

Globe Telecom revealed yesterday (26 September) that it has concluded the sale of the first tranche of 800 towers (out of 3,529) being purchased by Frontier Tower Associates Philippines Inc. (Frontier Towers) for a cash consideration of PHP10 billion (USD169.4 million). The announcement comes roughly a month after the pair signed the sale and leaseback contracts for the two sets of towers assets in August. In addition, it expects the separate sale of another portfolio – a deal finalised on 11 August with MIESCOR Infrastructure Development Corporation (MIDC) – to close in the next few weeks.

Globe CFO Rosemarie Maniego-Eala said: ‘This deal brings financial resources that will strengthen our balance sheet and provide sufficient flexibility to properly compete in this dynamic market.’

Separately, Globe announced that it has inked a third sale and leaseback agreement with Phil-Tower Consortium worth PHP20 billion, the proceeds of which will be used to fund expansion works and pay off maturing debts. The operator confirmed that the towers, mostly located in Visayas and Mindanao, will be leased back to Globe for an initial 15 years. The pre-tax transaction gain from the deal is estimated at PHP5.2 billion.

Globe’s rival PLDT Inc. recently divested more than 5,900 telco towers for PHP77 billion.

Philippines, Globe Telecom (incl. Innove)