Globe, the country’s leading digital platform, said Monday it received P9.5 billion from Frontier Tower Associates Philippines Inc. for the sale of 750 towers.
The telecom unit of the Ayala Group said 81 percent of the sold assets were ground-based towers and 19 percent were rooftop towers. It said with the latest closing, a total of 1,550 of the 3,529 towers had been transferred to Frontier Towers.
Globe said it achieved 32 percent closing of the largest tower deal in the country, with the transfer of ownership of 2,251 of 7,059 towers for P28 billion.
The first closing was attained on Sept. 23 with the transfer of 800 towers to Frontier Towers for P10 billion and another 701 towers to MIESCOR Infrastructure Development Corp. worth P8.4 billion on Oct. 14.
Globe said it would use the proceeds from the sale of the towers to pay down debt and for capital expenditures to support the ongoing network expansion.
The company programmed $1.3 billion in capex next year, down by 30 percent from $1.9 billion this year.
It said subsequent closings would happen once or when closing conditions were met. Globe said it expected the final closing for all the three portfolios to happen within 2023.
“We are happy that we have successfully completed 32 percent of this record-breaking initiative giving us much leeway to cover for our 2023 debt servicing requirements amidst the backdrop of rising interest rates. This tower deal will also help us meet the changing consumer demand while ensuring that our network expansion is done in a sustainable and responsible way,” Globe chief finance officer Rizza Maniego-Eala said.
Globe president and chief executive Ernest Cu said the company’s strategic partnership with the tower companies is critical in the very competitive market and in providing the best internet connectivity in the Philippines that is comparable to the rest of the world.
“We continue to be committed to developing the Philippines telecoms sector and the pace at which we are completing the handovers of tower sites in close collaboration with Globe is testament to that,” said Frontier Towers chairman and chief executive Patrick Tangney.