Globe Telecom Inc. is nearing the completion of its P45-billion tower asset sale to Frontier Tower Associates Philippines with another closing that resulted in a P2.38-billion cash flow.
On Monday, the Ayala-led telco giant announced the transfer of an additional 187 towers to Frontier Towers. It has so far turned over 2,492 out of the 3,529 units bought by the tower company.The parties inked their sale and lease back agreement back in 2022.
This is just one of the company’s many tower asset sales as it raises funds for capital expenditures and other corporate matters. In total, Globe sold 7,506 tower assets for P96.4 billion to several tower companies.
READ: Globe rings up P1.56B from towers sale
“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.
The sale and lease back deals are in line with the government’s tower-sharing initiative, which seeks to beef up connectivity across the country by allowing multiple users to share the towers. It will be more cost-effective for telcos since they do not have to put up more towers.
This year, the telco giant has set its capital expenditure guidance at $1 billion, which will be funded via internal cash flow, proceeds from tower sales and debts. By 2025, Globe targets to cut down spending to below $1 billion.
In the first quarter, Globe saw its profits decline by 7 percent to P6.8 billion on higher depreciation expenses and non-operating charges. INQ