Major Japanese trading house Sojitz Corp. will acquire a controlling stake in tower operator LBS Digital Infrastructure Corp. to enter the Philippine telecommunications tower market.
Sojitz said it will underwrite about 7 billion yen ($61.36 million) in shares of LBS Digital as the Tokyo-based company is looking to engage in projects to build towers to be shared for mobile services in both metropolitan areas and remote islands.
Sojitz did not release details of the deal, including how much stake it will own in LBS Digital or when the procedure will be completed. A Sojitz official only said the company will dispatch multiple staffers to the Philippine partner.
LBS Digital was established in April this year by a management team affiliated with major Philippine telecom construction company LBS Technologies Asia Pacific Corp. to engage in telecom tower construction for mobile phones and lease business.
Sojitz plans to install corrosion-resistant lightweight carbon fiber towers manufactured by a group company for infrastructural improvement, while utilizing LBS Digital's capabilities and track records in the fields of land transactions and tower design and construction.
Both sides hope to leverage each other's strengths to establish themselves as the largest telecom tower operator in a country where daily internet usage is one of the world's heaviest but mobile circuit speed is below the global average.