Globe secures P348M more from tower sales

MANILA  -Globe Telecom Inc. was able to raise P348 million more from the turnover of additional tower assets to a buyer, which the telco said would be used to fund capital expenditures (capex).

In a disclosure on Friday, the Ayala-led company said it transferred 29 towers to Miescor  Infrastructure Development Corp. (MIDC), a subsidiary of Manila Electric Co. It has already turned over 1,149 out of 2,180 towers bought by MIDC.

“There will be multiple closing dates which will happen as and when closing conditions are met. We will continue to provide updates on the relevant development of the disposal of tower assets in due course,” Globe said.

Globe sold a total of 7,506 telco assets, amounting to P96.4 billion, to multiple tower companies aside from MIDC.

READ: Globe raises P2B from new tower deal

The transactions are in line with the government’s common tower policy, which supports colocation services. This means independent tower companies can share their assets to any local player to expand wireless network coverage across the country.

The telco giant said cash inflow from the tower sales would support capex spending and debt repayments, among others.

Globe has allocated $1.3 billion in capex this year. It has invested P37.7 billion in the first half, bulk or 90 percent of which was earmarked for data network expansion to address the growing data requirements of customers.

It built 542 new cell sites and upgraded 5,087 mobile sites in the first half. The telco giant also opened 356 new 5G sites, boosting outdoor coverage to 97.44 percent in the National Capital Region and 91 percent in key cities in Visayas and Mindanao.

—TYRONE JASPER C. PIAD