Following two similar transactions earlier this year, Globe Telecom Inc. has sold another collection of cell towers to Phil-Tower Consortium Inc. As Inquirer.Net reports, this latest transaction involved the transfer of an additional 100 cell towers, bringing the total number of exchanges between the two parties up to 810. The reported cost of the newest acquisition is $26.5 million.
Phil-Tower picked up its first cadre of 578 cell towers in February, with another 132 units purchased in April. Phil-Tower has begun the process of operating a re-leasing tower space to interested vendors. As Inquirer.Net notes, the Philippines government encourages colocation of cell tower equipment, making this arrangement beneficial to many participants. Globe was quick to lease back much of the tower space it sold to Phil-Tower. This is in line with an earlier agreement between the two companies that allowed Globe access to 1,350 Phil-Tower cell towers for $358 million.
“This transaction will allow Globe to efficiently raise capital, redeploy capital from passive infrastructure to active equipment, improve balance sheet health and leverage expertise of tower companies,” the company stated. The Inquirer.Net speculates that the cashflow will allow Globe to both expand its footprint, and alleviate some debts.
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