Philippine integrated telco PLDT Inc. (PLDT) announced another transaction milestone in connection with its pioneering sale of 5,907 telecom towers and related passive telecom infrastructure for P77 billion announced on April 19, 2022.
As of Oct. 3, 2022, ownership of a total of 4,435 towers, or 75% of the 5,907 towers covered by the sale and leaseback transaction had been transferred to the tower companies, and a total cash consideration of P57.7 billion received by the Group.
According to PLDT, proceeds from the sale of the towers would be used to pay down debt, and support operating and capital expenditures.
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“The transaction is timely as it allows PLDT to avoid additional debt against a backdrop of a rising interest rate environment,” the telco said in a media advisory.
In addition, a portion of the towers’ sale proceeds amounting to P9 billion was earmarked as special dividends, of which P6 billion equivalent to P28 per share was paid out to shareholders on Sept. 5, 2022.
PLDT expects additional closings before the end of the year, with final closing anticipated to be completed by Q1 2023. The sale of telecom towers in addition to the 5,907 towers sold, or committed to be sold, is currently under evaluation.