Globe Telecom Inc. has completed the sale of 29 towers to Miescor Infrastructure Development Corp. (MIDC) for approximately PHP348 million.
This transaction is a component of a larger sale and leaseback agreement signed in August 2022 involving MIDC and Frontier Tower Associates Philippines Inc. (FTAP) for a total of 5,709 telecommunication towers and related infrastructure, valued at P71 billion.
Globe Telecom has already closed 1,149 out of the 2,180 towers slated for acquisition by MIDC and 2,094 out of the 3,529 towers designated for FTAP. These agreements are part of Globe’s strategy to efficiently raise capital, shift capital from passive infrastructure to active equipment, strengthen its balance sheet, and benefit from the expertise of tower companies.
The telecom company anticipates recognizing an estimated post-tax gain of PHP13.5 billion from this transaction, although the final amount may vary based on the carrying value of the tower assets at the time of sale.
Under these agreements, MIDC is set to acquire 2,180 towers for PHP26 billion, while FTAP will acquire 3,529 towers for PHP45 billion. MIDC specializes in tower development, ownership, and management, while FTAP is a subsidiary of Pinnacle Towers, a digital infrastructure platform with a strong focus on the Philippine market.
In the first half of 2023, Globe Telecom reported a net income of PHP14.38 billion, representing a 27% decrease from the PHP19.68 billion recorded in the previous year. However, gross revenues increased to PHP89.52 billion from PHP87.32 billion. On Friday, Globe Telecom shares closed at PHP1,793 apiece, showing a decrease of PHP40 or 2.18%.
This move reflects Globe Telecom’s strategic initiatives to optimize its assets and financial position, aligning with evolving market dynamics while continuing to provide essential telecommunications services.
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