Globe inks new P20-B telco tower divestment deal
Globe Telecom Inc. announced on Tuesday the third and final installment of its tower sale and lease agreements with PhilTower Consortium Inc.—a bundle valued at P20 billion.
The deal, whose proceeds are earmarked for its capital expenditure and debt repayments, involves the remaining 1,350 towers of the Ayala-led telecommunications company.
Globe anticipates to book P5.2 billion post-tax gain from the transaction.
The latest transaction brought the value of the telco player’s sale and lease agreements to a total of P91 billion, which is more than the P77-billion deal of the same nature contracted by its rival PLDT Inc. This also surpassed Fitch Group unit CreditSight’s deal projection of P80 to P90 billion.
“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.
“We look forward to growing a long-term partnership with all mobile network operators to bring efficiency, cost savings and faster expansion and further bridge the nation’s digital divide,” PhilTower president Devid Gubiani added.
Prior to this, Globe signed two agreements for 5,709 towers amounting to P71 billion in total in August.
The first package consisted of 2,180 towers in Luzon, which were sold to Manila Electric Co. unit Miescor Infrastructure Development Corp. for P26 billion. The second agreement involved the sale of 3,529 towers to Frontier Tower Associates Philippines for P45 billion.
“There will be multiple closing dates which will happen as and when closing conditions are met,” Globe said.
In a separate statement, Globe announced the closing of the transaction involving the first 800 out of the 3,529 towers under the second deal. The first deal, meanwhile, is expected to close within the next few weeks.
The Ayala-led company earmarked P89 billion worth of capital expenditures for the year.
Globe’s net income in the first half rose by 49 percent to P19.65 billion from last year’s P13.04 billion, supported by consolidated service revenue, which grew by 4 percent to P78.9 billion. INQ