AYALA-LED Globe Telecom, Inc. said it has generated P85.2 billion from its tower sales after fully transferring some of its tower assets to Frontier Tower Associates Philippines, Inc. (Frontier Towers).
“These tower assets are composed of 84% ground-based towers and 16% rooftop towers,” Globe said in a stock exchange disclosure on Thursday.
The telco has closed the sale of 1,037 towers valued at P13.17 billion, marking the completion of 3,529 towers to be acquired by Frontier Towers.
“This transaction provides us with a higher level of financial flexibility to manage our leverage ratios and effectively address the evolving consumer demands while ensuring sustainable network expansion,” Globe Chief Finance Officer Rizza Maniego-Eala said in a statement.
Overall, Globe has transferred 6,628 towers, generating a total of P85.2 billion, out of the 7,506 towers planned for the sale and leaseback arrangement.
“Our strong commitment to fostering collaborative partnerships is exemplified by the full handover of towers sold to Frontier Towers. We firmly believe that our strategic partnerships with tower companies are pivotal in this competitive market landscape,” Globe President Ernest L. Cu said.
Frontier Towers Chairman and Chief Executive Officer Patrick Tangney said the completion of tower sales allows the company to expand its network in the Philippines and further enhance its capacity to provide digital connectivity.
“With this latest closing, we near the 5,000-tower mark and cement our position as the largest digital infrastructure provider in the Philippines,” Mr. Tangney said.
Frontier Towers is an independent tower company focused on building and operating telecommunication infrastructure, including towers and related assets.
In 2022, Globe signed agreements with MIESCOR Infrastructure Development Corp. (MIDC) and Frontier Towers for the sale of 5,709 telecommunication towers and related passive infrastructure for about P71 billion.
Frontier Towers is set to acquire a total of 3,529 towers for P45 billion, while MIDC will acquire 2,180 towers for P26 billion.
In the same year, it also signed an agreement with PhilTower Consortium, Inc. (PhilTower) for the telco’s 1,350 towers.
Proceeds from this transaction will fund Globe’s capital investments, debt repayments, and improve its balance sheet, the company said.
At the stock exchange, shares in the company gained P14, or 0.67%, to end at P2,114 apiece. — Ashley Erika O. Jose