Globe secures P1.85B more from tower sales
MANILA, Philippines — Globe Telecom Inc. has injected P1.85 billion more into its coffers after receiving additional proceeds from the sale of its telecommunication towers to MIESCOR Infrastructure Development Corp. (MIDC).
In a disclosure on Friday, the Ayala-led company said it had recently transferred 154 towers acquired by MIDC. It has so far turned over 1,348 of 2,180 towers included in a sale and lease-back deal worth P26 billion.
“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.
READ: Globe raises cash from first phase of tower deal
In total, the Ayala-led company sold 7,506 tower assets for P96.4 billion to several tower companies.
The sale and lease-back of tower assets are in line with the government’s tower-sharing initiative, which seeks to beef up connectivity across the country. Tower sharing enables operators to expand footprint without putting up more facilities. Multiple operators can lease the towers at the same time, making the system cost-effective for everyone.
READ: Study: Telcos, consumers winners in PH’s common tower policy
Globe also said liquidating the assets would allow it to raise funds for capital expenditures (capex) and improve balance sheet health while leveraging the expertise of tower companies.
Last year, Globe spent P70.6 billion in capex to fund its network infrastructure.
The telco giant built 1,217 new cell sites, upgraded nearly 7,000 mobile sites and installed 894 new 5G sites across the country. It now has a 97.9-percent 5G outdoor coverage in the National Capital Region and 92.36 percent in key cities in the Visayas and Mindanao.
For this year, it set a capex of $1 billion, which will be funded via internal cash flow, proceeds from tower sales and debts. By 2025, Globe targets to further cut down spending to below $1 billion.
The Ayala-led company saw its net income decline by 29 percent to P24.58 billion last year due to higher depreciation expenses and the absence of a one-time gain. INQ
