Globe Telecom Inc. has hauled in P52 billion from the sale and leaseback of its towers to date, the company disclosed Wednesday, Aug. 16, 2023.
The company achieved the fourth closing of 113 towers sold to Frontier Tower Associates Philippines Inc. (Frontier Towers) for P1.4 billion, it said.
Frontier Towers is a subsidiary of Pinnacle Towers, an Asia-focused digital infrastructure platform backed by leading global investment firm KKR.
The amount reflects the value of the tower assets which are composed of 77 percent ground-based towers and 23 percent rooftop towers located in Luzon, Visayas and Mindanao.
Already, Globe received around ₱26.6 billion from Frontier Towers to date, as they gained ownership and management rights to 2,094 towers out of the 3,529 acquired towers.
In addition, the telco announced the closing of another 100 towers worth around P13.4 billion from MIESCOR Infrastructure Development Corporation (MIDC).
MIDC is a joint venture between MIESCOR, a subsidiary of Meralco, and Stonepeak, an alternative investment firm managing $53.4 billion assets.
The tower assets being transferred to MIDC are composed of 64 percent ground-based towers and 36 percent rooftop towers.
With this recent closing, MIDC already has control of 1,120 towers out of the 2,180 towers covered by the ₱26 billion sale and leaseback deal signed in August, last year.
In total, Globe has closed 54 percent of its tower deals, transferring ownership of 4,039 out of 7,506 towers for ₱51.9 billion.
Subsequent closings will happen as and when closing conditions are met.
“The business of Globe is a capital intensive one," according to Chief Finance Officer, Rizza Maniego-Eala.
"This transaction with tower companies has proven to be a great complement to our roll out of critical infrastructure to achieve wider coverage and consistency of service across the country," she explained.
"We continue to collaborate with Frontier Towers and MIDC to accelerate and maintain a modern and effective network to serve millions of Filipinos reliant on connectivity and online platforms for their daily activities,” Maniego-Eala added.
“The handover of this fourth batch of towers is another important step in our journey towards delivering stronger connectivity and sustainable, inclusive economic growth to the people of the Philippines,” said Frontier Towers’ Chairman and CEO Patrick Tangney.
"Each transitioned tower signifies a step toward building a digital ecosystem," Helen Grace T. Marquez, President and CEO of MIDC pointed out.
"Our journey is a collective effort, and our commitment to advancement remains steadfast, one tower at a time," she added.
"By strengthening our network and expanding our capacity, which our partnership with Frontier Towers and MIDC enable us to do, we hope to revolutionize the digital landscape and be a leading enabler of technology in the country,” Ernest L. Cu, Globe President and Chief Executive Officer, concluded.