Globe signs P5.4B sale, leaseback deal of 447 Luzon towers

GLOBE announced Monday, May 8, 2023, the signing of the sale and leaseback agreement with Unity Digital Infrastructure (Unity), a partnership between Aboitiz InfraCapital (AIC) and Partners Group for the sale of 447 towers.

The tower assets consist of 84 percent ground-based towers and 16 percent rooftop towers.

The sale comes with a commitment to build over 200 towers across Visayas and/or Mindanao.

Globe expects to raise total proceeds of P5.4 billion from executing this transaction.

The towers, which are all located in Luzon, will be leased back to Globe for an initial period of 15 years.

The first close for this portfolio is targeted to occur in the third quarter of 2023, with subsequent closings happening as and when closing conditions are met.

Globe estimates the pre-tax net transaction gain from this transaction to be P1.8 billion, the reporting and recognition of which will be according to the timing of the transaction closings.

The sale to Unity brings Globe’s total tower sold from 7,059 towers to 7,506 towers and the expected proceeds will be used to finance capital expenditures and maturing debts. (PR)