Globe raises P4.06B from tower sale to MIDC, Frontier
GLOBE Telecom, Inc. on Monday said it raised P4.06 billion through the sale of telecommunications towers to Miescor Infrastructure Development Corp. (MIDC) and Frontier Tower Associates Philippines, Inc.
The transaction included the sale of 140 towers to MIDC for approximately P1.68 billion, representing MIDC’s acquisition of 1,669 towers, or 76.6% of the total 2,180 towers to be acquired, Globe said in a regulatory filing.
MIDC, a subsidiary of Manila Electric Co., specializes in the development, ownership, and management of communication infrastructure.
Additionally, Globe closed the sale of 187 towers to Frontier for P2.38 billion, advancing Frontier’s acquisition to 2,492 towers, or 70.6% of the 3,529 towers agreed upon.
Globe has agreed to sell a total of 5,709 telecommunication towers and associated passive infrastructure to MIDC and Frontier for P71 billion.
MIDC is set to acquire 2,180 towers for P26 billion, while Frontier will acquire 3,529 towers for P45 billion.
Proceeds from these transactions will be used for capital investment, debt repayment, and to strengthen its balance sheet, Globe said.
The company anticipates a post-tax gain of approximately P13.5 billion from these transactions.
Last week, Globe announced progress in its tower sales to PhilTower Consortium, with 1,148 towers, or 85% of the planned 1,350 towers, already acquired.
The telecommunications company signed an agreement with PhilTower for the sale of its towers and related passive infrastructure for approximately P20 billion.
For the first quarter, Globe reported revenue of P45.31 billion, a marginal increase of 0.6% from P45.03 billion in the same period last year.
Meanwhile, its attributable net income declined by 6.1% year on year to P6.81 billion, compared to P7.25 billion in the corresponding period of the previous year.
At the local bourse on Monday, shares in the company closed P12 or 0.57% lower at P2,088 apiece. — A.E.O. Jose