Globe Telecom transferred 701 towers to Miescor Infrastructure Development Corporation, as part of plans to sell over 7000 towers to raise PHP71 billion to pay for coverage expansion and debts.
Globe Telecom detailed in a statement that Miescor will pay PHP8.4 billion for the 701 towers and related passive infrastructure. The assets compose of 73% ground-based towers and 27% rooftop aerials. Both companies signed a 15-year leaseback deal, Miescor will acquire 2,180 towers in total.
To date, Globe completed the sale of 1,501 out of 7,059 towers or 21% of the total towers being sold off as part of its strategy to balance the books while funding coverage expansion.
In September, Globe transferred 800 towers to Frontier Towers for PHP10 billion. It was the first closing of a spate of tower deals.
“We are pleased with the great progress of this initiative as we complete another close for our record-breaking tower sale and leaseback transactions. This brings us closer to our goal of getting much-needed flexibility to ensure we are able to sustain our best-in-class services and operations and protect our position in the market,” said Globe Telecom CFO Rizza Maniego-Eala.
“We are thrilled to be working alongside MIDC supporting the government’s goal of improving the tower density and internet experience in the Philippines. We believe that this partnership will unlock more synergies for better infrastructure utilization and efficiencies,” added president and CEO Ernest Cu.