PLDT Inc. announced Friday, Dec. 16, that subsidiaries, Smart Communications, Inc. and Digitel Mobile Phils., Inc., have signed the P9.2 billion sale of 650 telecommunications towers to Unity Digital Infrastructure Inc.
The price reflects the value of the towers located in the Visayas and Mindanao, which are covered by the initial sale and leaseback transactions announced in April 2022, said PLDT.
Backed by Aboitiz InfraCapital and Partners Group, a leading global private markets investment firm, Unity is an established independent tower company in the Philippines and an existing partner of the PLDT Group.
Smart also entered into a Master Services Agreement with Unity on similar terms (including tenor and lease rate) as the Master Services Agreements it entered this April.
Upon completion of the transaction, Smart will lease back the towers for 10 years at competitive terms as the anchor tenant.
The sale and leaseback will be complemented by a new tower build commitment of 220 towers over the next few years to expand Smart's network.
Closing of the transaction will be staggered based on the number of towers being transferred. All closings are expected to be completed in 2023.
The tower deal supports the Philippine Department of Information and Communications Technology’s policy of using common towers for a more cost efficient roll out nationwide.
“As a result of this partnership with Unity, we expect further enhancements to our network quality, service excellence and customer experience across the Visayas and Mindanao," says PLDT and Smart President and CEO Alfredo S. Panlilio.
"The improved connectivity will support the digitalization of the Philippines, bringing benefits to all Filipinos,” he added.