Globe Telecom completed the transfer of P28 billion worth of cell site assets to third-party operators, marking a new milestone in the country’s biggest tower deal.
With the transfer, Globe said it had turned over 2,251 towers out of its total of 7,059 towers to third-party operators.
“We are happy that we have successfully completed 32 percent of this record-breaking initiative giving us much leeway to cover for our 2023 debt servicing requirements amidst the backdrop of rising interest rates,” Globe chief finance officer Rizza Maniego-Eala said in a stock exchange filing on Monday.
“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.
The latest transaction involved the turnover of 750 towers to Frontier Tower Associates Philippines Inc. for a total of P9.5 billion.
These tower assets were composed of 81 percent ground-based towers and 19 percent rooftop towers.
Last Sept. 23, Globe transferred 800 towers to Frontier Towers for a cash consideration of P10 billion and another 701 towers to Miescor Infrastructure Development Corp (MIDC) worth P8.4 billion last Oct 14.
The proceeds were used to pay down debts and to partly finance capital expenditures.
The final transfer of tower assets will be completed within next year, Globe noted.
“We continue to be committed to developing the Philippines telecoms sector and the pace at which we are completing the handovers of tower sites in close collaboration with Globe is testament to that,” Patrick Tangney, chair and CEO of Frontier Towers, said in the same filing.
“We continue to be committed to developing the Philippines telecoms sector and the pace at which we are completing the handovers of tower sites in close collaboration with Globe is testament to that,” he added.