Towers sale earns P12B for PLDT group
The transaction brought the total number of towers monetized via sale and leaseback transactions to over 7,500 for a total consideration of more than P98 billion, the company indicated
Telco giant PLDT Inc. reported its subsidiaries Smart Communications Inc. and Digitel Mobile Phils. Inc. have sold 1,012 telecommunications towers and equipment to earn P12.1 billion.
The sale was made to Frontier Tower Associates Philippines Inc reflecting the value of the towers covered by the sale and leaseback transactions announced in April and December 2022.
The transaction brought the total number of towers monetized via sale and leaseback transactions to over 7,500 for a total consideration of more than P98 billion, the company indicated.
“This transaction represents another important milestone in our asset-light strategy focused on operational efficiencies and best-in-class customer experience, supportive of the government’s digital roadmap for the Philippines,” PLDT and Smart president and CEO Alfredo S. Panlilio said.
Panlilio is a member of the Private Sector Advisory Council Digital Infrastructure group that supports the nation’s development blueprint and digitalization agenda through the GoDigital Pilipinas movement.
Frontier is a subsidiary of Pinnacle Towers Pte. Ltd., an Asia-focused digital infrastructure platform with a strong focus on the Philippines market. The 1,012 towers being monetized are primarily located in Luzon.
Concurrent with the execution of the Sale and Purchase Agreement for the sale of towers, Smart also entered into a Master Services Agreement with Frontier on similar terms as the Master Services Agreements previously entered into by Smart in relation to the sale and leaseback transactions announced in April and December 2022.
Upon completion of the transaction, Smart will lease back the towers for a period of 10 years at competitive terms as the anchor tenant. The sale and leaseback will be complemented by a commitment of 550 new points of service from Smart over the next few years enabling Smart to further expand its network and enhance customer experience.
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