GLOBE Telecom today announced that its board has approved the sale of over 7,059 towers which would be divided into three portfolios assigned to three different tower local and international companies.
“We have always been looking for ways to monetize our tower assets and this record-breaking initiative marks our continued commitment to optimize our capital raising efforts and further strengthen the balance sheet as we seek to capitalize on opportunities in the telecommunications sector and complementary services,” said Rizza-Maniego Eala, Globe Chief Finance Officer.
Globe said the approval for its milestone initiative to sell the said towers, of which 66% are located in Luzon, 19% in Mindanao, and 15% in the Visayas.
Eala said the tower assets up for sale are made up of 79% ground-based towers and 21% rooftop towers and have been grouped into three unique distinct portfolios assigned to three different tower companies representing local and international groups with deep experience and expertise in telecom tower infrastructure, and engineering and construction.
As the biggest milestone of this initiative, Globe signed two sale and leaseback agreements for two portfolios consisting of 5,709 telecom towers and related passive telecom, according to Eala.
The first portfolio being sold consists of 2,180 telecom towers in Luzon, which will be acquired by leased back to Globe for an initial period of 15 years.
This longer lease tenor provides Globe with more stability and certainty about the use of these passive infrastructures, which is critical to its core telco service.
The first close for this portfolio is targeted to happen within the 3rd quarter of the year, with subsequent closings happening as and when closing conditions are met. Globe estimates the pre-tax be according to the timing of the transaction closings.
The second portfolio consisting of 3,529 towers will be sold to Frontier Tower Associates Philippines Inc.
Globe is also in advanced discussion with one other tower company for the potential sale and leaseback of an additional ~1,350 telecom towers and related passive telecom infrastructure.
This last portfolio is made up of towers located in Visayas and Mindanao.
Globe expects to sign the sale and leaseback agreement with this tower company within the 3rd quarter, with the first closing happening within the 4th quarter of the year.
The proposed deals affirm Globe’s commitment to the United Nations Sustainable Development Goals, particularly UN SDG No. 9, which highlights the roles of infrastructure and innovation as crucial drivers of economic growth and development.
This also supports leveraging the strengths of the tower company partners to increase operational efficiencies.
At present, the telco is in advance discussion with one other tower company for the sale and leaseback of an additional 1,350 telecom towers and related passive telecom infrastructure in Visayas and Mindanao.
Globe expects to sign the sale and leaseback agreement with this tower company within the third quarter, with the first closing happening by the 4th quarter of this year.
