MANILA - Globe Telecom on Friday said its board has approved the sale of over 7,059 towers which would be divided into 3 portfolios assigned to 3 different tower local and international companies.
Out of the total, 66 percent are located in Luzon, 19 percent in Mindanao and 15 percent in the Visayas, the Ayala-led telco said in a disclosure to the stock exchange.
Seventy-nine percent of the tower assets are ground-based towers while 21 percent are rooftop infrastructure, it added.
Globe said it has signed a sale and leaseback agreement for the first portfolio consisting of 2,180 telecom towers and related passive infrastructure for over P26 billion.
The first asset portfolio located in Luzon will be acquired by MIESCOR Infrastructure Development Corp. Globe's leaseback agreement was for an initial period of 15 years.
The second set made up of 3,529 towers worth P45 billion will be sold to Frontier Tower Associated Philippines Inc (Frontier Towers). Globe also has an initial leaseback agreement for 15 years, it said.
For the third asset portfolio, Globe said it is in advanced discussion with other tower company for the sale of 1,350 towers with no total value disclosed yet.
"These expanded long-term partnerships with the tower companies show Globe's commitment to help improve the Philippines' internet condition, as well as our desire to have as many Filipinos enjoy the benefits of having access to reliable internet," Globe president and CEO Ernest Cu said.
Globe said 75 percent of the proceeds from the sale would be allocated as capital expenditure, while 25 percent would be earmarked for debt payments.
Once completed, the deal would become the "largest ever tower sale and leaseback agreement deal in the country," overtaking PLDT Inc's earlier deal with over 5,900 towers worth P77 billion.
The government has been pushing for the entry of common tower companies in the Philippines to hasten the build of telco infrastructure and improve connectivity.