Globe exceeds tower sale targets, gross proceeds reach close to P100B

Leading digital solutions platform Globe has exceeded its tower sale targets after finalizing a significant deal with Unity Digital Infrastructure. The agreement entails the sale and leaseback of 447 towers, generating gross proceeds of P5.4 billion to be paid in tranches, similar to the arrangement for other tower portfolios.

Since last year, Globe has been actively selling its non-strategic infrastructure, aiming to offload 7,000 towers in what is potentially the largest-ever sale and leaseback transaction in the Philippines. The recent contract with Unity pushed the number to over 7,500, representing the upper threshold of its divestment plan.

“At the moment I think we have upped our tower sale.  We will see if there are any more opportunistic transactions for the balance year but the fact that we’re at 7,509 is already over our target,” Globe Chief Finance Officer Rizza Maniego-Eala said at a recent briefing when asked if Globe plans to sell more towers.

Including the Unity deal, the gross proceeds for all tower transactions has already reached P96.322 billion. To date, Globe has successfully transferred 44% or 3,120 assets out of the 7,059 acquired by tower companies, yielding approximately P40.5 billion.

The tower sale proceeds will be utilized for Globe’s capital expenditure investments, facilitating the improvement of the company’s financial standing. Upon receipt of all tower sale proceeds, Globe expects its Gross Debt to EBITDA ratio to be around 2.2x, aligning with pre-pandemic levels.

Globe earlier raised P11 billion from the closure of four tower sales with Phil-Tower Consortium, Inc. (PhilTower). As part of this milestone, an additional 132 towers in Visayas and Mindanao were transferred to PhilTower, amounting to approximately P2 billion. Globe has successfully turned over 710 out of 1,350 towers, accompanied by PhilTower’s commitment to construct 750 more across the Visayas and Mindanao regions.

Aside from PhilTower, MIESCOR Infrastructure Development Corporation (MIDC) has received 39% of the 2,180 towers and related passive telecom infrastructure under the first Globe portfolio. Frontier Tower Associates Philippines (FTAP) has received 44% of the second portfolio, which consisted of 3,529 towers.

Globe plans to keep its strategically important towers for its operations. By focusing on these towers, the company aims to enhance its operational efficiency and ensure reliable services for its customers, strengthening its overall performance.