Globe Telecom, Inc. has reportedly generated PHP 85.2 billion from its tower sales, having completed the transfer of its remaining tower assets to Frontier Tower Associates Philippines, Inc. (Frontier Towers).
In a stock exchange disclosure, Globe stated that the tower assets sold included 84% ground-based towers and 16% rooftop towers. The company has finalized the sale of 1,037 towers, valued at PHP 13.17 billion, completing the transfer of a total of 3,529 towers to Frontier Tower Associates Philippines, Inc.
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“This transaction provides us with a higher level of financial flexibility to manage our leverage ratios and effectively address the evolving consumer demands while ensuring sustainable network expansion,” Globe Chief Finance Officer, Rizza Maniego-Eala, said in a statement.
Overall, Globe has transferred 6,628 towers—generating PHP 85.2 billion—out of the 7,506 towers originally slated for the sale and leaseback arrangement.
“Our strong commitment to fostering collaborative partnerships is exemplified by the full handover of towers sold to Frontier Towers. We firmly believe that our strategic partnerships with tower companies are pivotal in this competitive market landscape,” Globe President, Ernest L. Cu said.
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Frontier Towers Chairman and CEO, Patrick Tangney, stated that the completion of the tower sales enables the company to expand its network in the Philippines and boost its capacity to deliver enhanced digital connectivity. “With this latest closing, we near the 5,000-tower mark and cement our position as the largest digital infrastructure provider in the Philippines,” Tangney concluded.
Globe plans to use the proceeds from its tower transactions to finance capital expenditures and settle maturing debts.
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