Globe Telecom Inc. yesterday completed the sale of 750 towers to Frontier Tower Associates Philippines Inc. for P9.5 billion.
With this latest closing, a total of 1,550 out of the 3,529 towers have been transferred to Frontier Towers.
Globe has achieved 32 percent closing of the largest tower deal in the country with the transfer of ownership of 2,251 out of 7,059 towers for P28 billion.
“This giv(es) us much leeway to cover for our 2023 debt servicing requirements amidst the backdrop of rising interest rates. 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,” Rizza Maniego-Eala, Globe chief finance officer, said in a statement.
The first closing was attained last September with the transfer of 800 towers to Frontier Towers for a cash consideration of P10 billion and another 701 towers to MIESCOR Infrastructure Development Corp. worth P8.4 billion last October.
Globe said the proceeds from the sale of the towers will be used to pay down debt as well as for capital expenditures to support its ongoing network expansion.
Subsequent closings will happen as and when closing conditions are met, Globe added, but it expects the final closing for all the three portfolios to happen within next year.
