Sunday, May 19, 2024

GLOBE Completes 60% of its Php96-Billion Tower Sale and Leaseback Deal and Successfully Transfers 2,057 Towers in 2023

GLOBE Completes 60% of its Php96-Billion Tower Sale and Leaseback Deal and Successfully Transfers 2,057 Towers in 2023

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Globe (PSE:GLO) announced recently the third closing of another 79 towers sold to Unity Digital Infrastructure (Unity) for a cash consideration of about Php948 million. This transaction is the last closing for the year 2023 and marks the third tranche of the 447 sale-and-leaseback deal with Unity with the transfer of ownership and management rights of 249 towers, or around 56% of the sold towers.

With this recent closing, Globe has officially turned over the ownership of 4,467 towers (2,410 in 2022 and 2,057 in 2023) out of 7,506 towers sold, raising about Php57.4 billion, or approximately 60% of the tower deal. Apart from its deal with Unity, Globe sold tower portfolios to Frontier Tower Associates Philippines Inc., Phil-Tower Consortium, Inc., and MIESCOR Infrastructure Development Corporation. For this year alone, 1,301 towers were transferred during the first half and another 756 towers during the second half, gaining over Php27 billion in proceeds. Subsequent closings will happen as and when closing conditions are met. Globe will make relevant announcements in accordance with the rules of the Philippine Stock Exchange, as and when appropriate.

Globe Chief Finance Officer, Rizza Maniego-Eala, stated, “We have made significant progress with our tower deal today, transferring more than half of the towers and reaching 60% of our overall tower deal. This recent transaction with Unity marks our last closing for the year 2023 and we look forward to completing our landmark tower sale next year. We believe that the undisrupted services to our customers with the successful handover of the tower assets to the towercos are proof of Globe’s strong commitment to service excellence.”

“Solving our customer’s connectivity needs and supporting their digital lifestyle have always been at the heart of what we do. Working together and finding all means to supplement our tower builds through our continued partnership with the towercos will add resiliency and stability to Globe’s expanding network. We believe that our continued collaboration with the towercos is crucial in helping us fund our various innovations to expand our digital portfolio, enhance customer experience, and bring connectivity across all islands in the country.” said Ernest L. Cu, Globe President and Chief Executive Officer.