Filipino carrier Globe Telecom says it has secured board approval for a sale and leaseback agreement involving more than 7,000 towers. In a press release today (12 August), the company said it expects to generate net proceeds of around PHP71 billion (USD1.75 billion) from the sale of 5,709 towers in two separate transactions, while also lining up the divestment of a third block of 1,350 telecom towers located in Visayas and Mindanao in the near future. The release noted that around 75% of the proceeds of the sales already agreed will be targeted towards ongoing network expansion as well as maintaining ‘network consistency and reliability scores’, while the remainder will go towards serving the company’s debt.
It is understood that 79% of the 7,000-plus towers are ground-based and 21% are located on rooftops. The first deal comprises 2,180 towers in Luzon, which are being bought by Miescor Infrastructure Development for PHP26 billion and leased back for an initial 15-year period; this deal is expected to close in 3Q22. Separately, a total of 3,529 towers are being acquired by Frontier Tower Associates Philippines for PHP45 billion – with a similar leaseback agreement schedule – and again, targeted to complete in the third quarter. Finally, Globe Telecom says talks are well underway with an as yet unnamed towerco regarding the sale of 1,350 telecom towers located in Visayas and Mindanao; it hopes to complete this sale in 4Q22.
Post time: Aug-12-2022