By Arjay L. Balinbin, Senior Reporter
The PLDT group announced on Friday that it is set to transfer the ownership of its 650 telecommunications towers to the Aboitiz-backed tower company Unity Digital Infrastructure, Inc., for around P9.2 billion.
PLDT subsidiaries Smart Communications, Inc., and Digitel Mobile Phils., Inc., recently signed a tower sale deal with Unity, the Pangilinan group said in an e-mailed statement.
“Closing of the transaction will be staggered based on the number of towers being transferred and subject to customary closing conditions,” the group noted. All closings are expected to be completed next year.
The agreement covers the sale and purchase of related passive infrastructure of the 650 towers that are primarily located in Visayas and Mindanao.
“Upon completion of the transaction, Smart will lease back the towers for a period of 10 years at competitive terms as the anchor tenant,” the PLDT group said.
“The sale and leaseback will be complemented by a new tower build commitment of 220 towers over the next few years enabling Smart to further expand its network and enhance customer experience,” it added.
The group is selling its tower assets as part of a transformation strategy, which is also in line with the government’s Common Tower Policy.
The policy calls for more than one telco to have access to towers, thereby increasing the number of subscribers being served by each tower. The government has been encouraging tower sharing to improve cell site density, which is believed to be one of the lowest in the region at 4,000 subscribers per tower.
The transaction brings the total number of PLDT group towers to be monetized through sale and leaseback deals to over 6,500 for more than P86 billion.
“This transaction deepens our relationship with Unity and its shareholders, while allowing PLDT to further unlock value, and providing us with additional financial and operational flexibility as we further expand across the Philippines,” PLDT Chairman Manuel V. Pangilinan said.
PLDT and Smart President and Chief Executive Officer Alfredo S. Panlilio said that the group expects further enhancements to its network quality, service excellence, and customer experience across the Visayas and Mindanao as a result of the partnership.
For his part, Aboitiz Group President and Chief Executive Officer Sabin M. Aboitiz said the transaction positions his group as a “leader in digital infrastructure.”
“We believe that, through these digital portfolio expansion initiatives, Aboitiz will be able to help address the gaps in connectivity and Internet access in the country,” he noted.
ABOITIZ COMPLETES DEAL FOR CEBU AIRPORT
In a related development, the Aboitiz group’s Aboitiz InfraCapital, Inc. (AIC) recently closed a transaction with Megawide Construction Corp. and GMR Airports International, B.V. (GAIBV) for the acquisition of shares in GMR Megawide Cebu Airport Corp. (GMCAC), the developer and operator of Mactan-Cebu International Airport.
AIC acquired 33.3% minus one share in GMCAC for P9.5 billion, Megawide said in an e-mailed statement on Friday.
Megawide and GAIBV also issued exchangeable notes that will mature in October 2024 to AIC for P15.5 billion. These notes will be exchanged by the Aboitiz company for the remaining shares in the MCIA operator.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls.