GLOBE Telecom, Inc. announced on Monday the transfer of its 750 towers to independent tower company Frontier Tower Associates Philippines, Inc. or Frontier Towers for P9.5 billion.
“These tower assets are composed of 81% ground-based towers and 19% rooftop towers,” Globe said in a disclosure to the stock exchange.
“With this latest closing, a total of 1,550 out of the 3,529 towers have been transferred to Frontier Towers,” the telco added.
The company noted that it has already achieved 32% closing of its tower deal with the transfer of ownership of 2,251 out of 7,059 towers for P28 billion.
“The first closing was attained last Sept. 23 with the transfer of 800 towers to Frontier Towers for a cash consideration of P10 billion and another 701 towers to MIESCOR Infrastructure Development Corp. (MIDC) worth P8.4 billion last Oct. 14,” Globe said.
The proceeds will be used to fund debt and capital expenditures to support the company’s network expansion.
According to Globe, it expects the final closing to take place next year.
“We are happy that we have successfully completed 32% of this record-breaking initiative giving us much leeway to cover for our 2023 debt servicing requirements amidst the backdrop of rising interest rates,” Globe Chief Finance Officer Rizza Maniego-Eala said.
“This tower deal will also help us meet the changing consumer demand while ensuring that our network expansion is done in a sustainable and responsible way,” she added.
For the nine months ended Sept. 30, Globe saw its attributable total comprehensive income increase 37% to P24.9 billion from P18.2 billion previously.
Total revenues for the period went up 3% to P130.2 billion from P126.4 billion in 2021.
The growth was “led by corporate data and mobile services, supplemented by the sustained growth from non-telco services,” Globe said in a statement.
The company saw its total data revenues as a percentage of total service revenues increase to 81% from 79% in 2021.
Globe shares closed 0.46% lower at P2,150 apiece on Monday. — Arjay L. Balinbin