Globe raises P20B from tower sales
This record-setting deal shows Globe’s commitment to capital efficiency and financial sustainability
Daily TribuneThis record-setting deal shows Globe’s commitment to capital efficiency and financial sustainability
Globe Telecom Inc. expects to raise P20 billion from its sale and leaseback agreement with Phil-Tower Consortium Inc. for the third portfolio of the assets it is monetizing.
In a disclosure to the Philippine Stock Exchange on Tuesday, Globe said the transaction covers 1,350 towers, 90 percent of which are ground-based towers while 10 percent are rooftop towers.
"This record-setting deal shows Globe's commitment to capital efficiency and financial sustainability. Through this initiative, we ensure our balance sheet health, which allows us to properly complete and fortify our market leading position," Globe chief finance officer Rosemarie Maniego-Eala said.
P5.2-B gain seen
With the first closing targeted within the year, the pre-tax gain from the transaction is estimated at P5.2 billion.
Globe President and Chief Executive Officer Ernest Cu said the company's monetization efforts "will provide an uplift to Globe's overall value, supporting our goal of enabling the digital lives of Filipinos."
In August, Globe also signed a P71-billion twin sale and leaseback agreement for the first two tower infrastructures it is selling. The proceeds from the sale will fund network expansion and sustain network consistency and reliability scores. It will also finance the debt servicing requirements of the company in 2023.
The Ayala-led company plans to sell more than 7,000 tower assets across the country — of which 66 percent are in Luzon, 19 percent in Mindanao, and 15 percent in the Visayas.
Its rival — PLDT Inc. — also entered into a P77-billion tower sale and leaseback agreement for 5,907 telecommunications towers and related passive telecom infrastructure.
The sales follow the common tower policy of the Department of Information and Communications Technology, which seeks to cut the spending on building communication towers.
