Globe Telecom and Unity Digital Infrastructure (UDI) agreed on a sale and leaseback arrangement for 447 towers, raising PHP5.4 billion (US$96.8 million) for debt and capital expenditures. UDI also pledged to build additional towers.
Aboitz InfraCapital and Partners Group joined together to create UDI. In accordance with the agreement, UDI will construct more than 200 towers in the southern Philippine provinces of Visayas and Mindanao.
The assets, which will be leased back for 15 years, are made up of 84% ground-based towers and 16% rooftop towers throughout Luzon. The first tower closure will take place in Q3 of this year. Subsequent tower closures will happen whenever specific requirements are completed. With this agreement, Globe's tower signed an agreement to be transferred to 7,506 in total.
Ernest Cu, the CEO of Globe Telecom, stated that this will enable them to streamline their operations and promote technology. This will upgrade the standard of living across the nations, especially in Visayas and Mindanao.
Further, the company also completed the sale of 160 towers to MIESCOR Infrastructure Development Corporation (MIDC). This brought in PHP 1.9 billion (US$34 million) for the operator based in the Philippines.
In total, 1,020 towers out of 2,180 towers have been handed over to MIDC as a result of this most recent closure. Out of the 7,506 towers sold, Globe has transferred 3,280 of them. When closing requirements are met, subsequent closings will take place.
