Globe raises P9.5B from tower sales
This tower deal will also help us meet the changing consumer demand while ensuring that our network expansion is done in a sustainable and responsible way
Daily TribuneThis tower deal will also help us meet the changing consumer demand while ensuring that our network expansion is done in a sustainable and responsible way
Ayala-backed Globe Telecom Inc. has raised P9.5 billion from the closing of its sale of 750 towers to Frontier Tower Associates Philippines Inc.
In a stock report on Monday, the company said the sale's proceeds will bankroll debt servicing requirements and support capital expenditure programs next year.
The latest development transferred 1,550 of the 3,529 towers to Frontier Towers, 81 percent of which are ground -based towers and 19 percent, are rooftop towers.
Globe had achieved a 32 percent closing of the largest tower deal in the country with the transfer of ownership of 2,251 out of 7,059 towers at a total cost of P28 billion.
"We are happy that we have successfully completed 32 percent of this record -breaking initiative giving us much leeway to cover our 2023 debt servicing requirements amid the backdrop of rising interest rates," Globe chief finance officer Rizza Maniego -Eala said.
Tower deal
"This tower deal will also help us meet the changing consumer demand while ensuring that our network expansion is done in a sustainable and responsible way," she added.
Last 23 September, Globe attained the first closing with the transfer of 800 towers to Frontier Towers for P10 billion and another 701 towers to MIESCOR Infrastructure Development Corporation worth P8.4 billion last 14 October.
Globe president and chief executive officer Ernest L. Cu said the company's "strategic partnership with the tower companies is critical in this very competitive market."
The telco giant said it expects final closing for all three portfolios to happen within 2023.
