MIDC, Globe firm up handover of initial 701 telco towers
MIESCOR Infrastructure Development Corporation (MIDC), a joint venture between Manila Electric Company (Meralco) subsidiary MIESCOR and New York-headquartered investment firm Stonepeak, has concretized the handover of the initial batch of 701 cell towers that had been divested by Ayala-led firm Globe.
“MIDC and Globe completed the first closing activities with the handover-takeover of 701 towers, keeping the staggered schedule of tower transfers on track for completion in the third quarter of 2023,” the Meralco affiliate-firm has stated in its announcement to the media.
Relative to the turnover of the initial towers, MIDC indicated that there was also financial closing of P8.4 billion for that fraction of the transaction.
The total number of towers that MIDC had acquired from Globe - based on their August 2022 deal - had been for 2,180 towers – and the aggregate transaction value had been pegged at P26.2 billion.
From that acquisition deal, MIDC had cemented a leaseback agreement with Globe for the continued use of the towers for the latter’s services to its customers.
“Under the master lease agreement, Globe will be the anchor tenant of the telco towers for an initial period of 15 years,” MIDC said.
The company similarly emphasized that it is “collaborating with Globe on 750 build-to-suit towers, which will be delivered to the company over the next four years” – and the Ayala telco company will also be the anchor-tenant.
MIDC Chairman Ray C. Espinosa qualified that on this business deal with Globe, the company would be able to “position itself to be a major player in the common tower space.”
Espinosa specified that they will also be “pursuing more opportunities that will promote the expansion of the country’s digital infrastructure and help hasten the growth of our digital economy.”
For Stonepeak Senior Managing Director and Head of Asia and the Middle East Hajir Naghdy, he conveyed that they will “look forward to identifying additional compelling opportunities to invest behind the mobile tower industry in the Philippines and by doing so continue to enhance the region’s digital infrastructure for the communities that depend on it.”
In the view of the Meralco-affiliated company, its lease arrangement with Globe “will benefit ordinary consumers as it helps telco companies improve network quality and build a more resilient infrastructure capable of quickly recovering from, if not endure, disasters and other calamities.”