Globe Telecom, the Manila, Philippines-headquartered wireless and wireline service provider, has been systematically monetizing its base of 7,506 towers. In the past two years, Globe has entered into agreements with third parties in two separate transactions, Inside Towers reported. Globe says that these transactions will allow it to efficiently raise capital, redeploy capital in active equipment, improve its balance sheet, and leverage the expertise of tower companies to run its passive infrastructure.
On August 11, 2022, Globe signed agreements with MIESCOR Infrastructure Development Corporation (MIDC), a subsidiary of Manila Electric Company, and Frontier Tower Associates Philippines for the sale of 5,709 telecommunication towers and related passive infrastructure for nearly $1.3 billion. Under those arrangements, MIDC would buy 2,180 towers for roughly $462 million, and Frontier Tower would acquire 3,529 towers for approximately $800 million. Then, on May 7, 2023, Globe signed a sale and leaseback agreement with Unity Digital Infrastructure, a partnership between Aboitiz InfraCapital and Partners Group, for the sale of 447 towers for roughly $96 million.
The tower sales have taken place over a series of transactions between Globe and the buyers that began in the fall of 2022 and continued through the first quarter of 2024. To date, Globe has turned over nearly 60 percent of its tower assets to these buyers, cashing in over $1 billion, inquirer.net reported.
In its March 25 filing with the Philippines Securities and Exchange Commission, Globe indicated that on March 14, it closed 154 towers to be acquired by MIDC for approximately $33 million. To date, Globe has closed a total of 1,348 out of 2,180 towers that MIDC will acquire.
On March 25, 2024, the company closed 91 towers to be acquired by Frontier Tower for approximately $21 million. Cumulatively, Globe has closed 2,305 out of the 3,529 towers that Frontier Tower has agreed to buy.
Also on March 25, 2024, Globe achieved the fourth closing of 33 towers to be acquired by Unity for approximately $7 million. Cumulatively, the company has closed 282 out of 447 towers that Unity will buy.
Globe says that there will be multiple closing dates as closing conditions are met, and that it will continue to provide updates on the disposal of its tower assets, accordingly.
By John Celentano, Inside Towers Business Editor
Reader Interactions