Globe Telecom has reached agreements to sell 5,709 of its towers to Miescor Infrastructure Development Corp. and Frontier Tower Associates Philippines for a total of 71 billion pesos.
The telecommunications company headed by Ayala said on Friday that Frontier acquired 3,529 towers for 45 billion pesos while Meralco unit Miescor secured 2,180 towers for 26 billion pesos.
Globe added that it was in “advanced discussions” with a tower company for a separate sale and leaseback agreement covering 1,350 towers in the Visayas and Mindanao and associated passive telecommunications infrastructure.
Most or 75% of the transaction proceeds will be used to fund Globe’s aggressive network expansion program. The balance will be used for its debt servicing needs next year.
“We have always sought ways to monetize our tower assets and this record-breaking initiative marks our continued commitment to optimizing our capital raising efforts and further strengthening the balance sheet,” said Rizza Maniego-Eala, Globe’s Chief Financial Officer.
In the first half, its net profit attributable to shareholders of the parent company jumped 49% to 19.65 billion pesos from 13.04 billion pesos last year, supported by revenue from consolidated services, which increased by 4% to reach 78.9 billion pesos.
Its GCash unit remains the country’s leading digital wallet with 5.2 million merchants using its service and 66 million registered users.
With a user base up 50% from last year, active users are now five times larger than those of his closest chairman and CEO at GCash.
—with reporting by Tyrone Jasper C. Piad and Gabriel Villapando
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