Globe and Unity Digital Infrastructure Inc., a joint venture between Aboitiz InfraCapital Inc. and Partners Group, signed the sale of 447 towers worth P5.4 billion.
Also part of the deal, which was finalized last month, Unity is building more than 200 towers for Globe in the Visayas and Mindanao. Globe expects a pre-tax net transaction gain of P1.8 billion from the deal.
“I think this whole initiative of building these towers as a shared proposition truly helps the nation and also helps deploy the digital infrastructure in a much more efficient manner,” Ernest Cu, president and CEO of the Globe Group, said at the recent ceremonial signing of the tower agreement with Unity Digital Infrastructure Inc.
Globe earmarked the earnings from the deal to “raise capital, redeploy capital from passive infrastructure to active equipment, improve balance sheet health, and leverage the expertise of tower companies.”
“This is a testament to our shared dedication to a more connected and digitally empowered Philippines. It’s more than a business deal, I think. It’s a solid commitment to cooperation, digital progress, and strengthening the future of our nation,” said Sabin Aboitiz, CEO of the Aboitiz Group.
Globe has so far secured P47.9 billion from the P96.3 billion Tower Sale and Leaseback deal covering 7,506 towers. Subsequent closings will happen as and when closing conditions are met. Its four Sale and Leaseback partners are Unity, MIESCOR Infrastructure Development Corp. (MIDC), Frontier Tower Associates Philippines, and PhilTower Consortium Inc.
With fewer towers in hand, Globe seeks to raise its operational efficiency without compromising the reliability of its telco services. After reaching peak levels of spending for its capital expenditures over the last two years to establish a significant network backbone, Globe is shifting toward capital efficiency and optimization.