GLOBE Telecom, Inc. on Monday said it has completed the sale of its 100 towers to Phil-Tower Consortium, Inc. (PhilTower) for P1.5 billion.
Overall, Globe has closed the sale of 1,100 towers, representing 80% of the 1,350 towers to be acquired by PhilTower, the company said in a regulatory filing.
“The transaction will result in availability of funds for Globe to support future capital expenditures, debt repayments and debt avoidance with the expectation to improve the balance sheet health of the company,” it said.
In September last year, Globe signed an agreement with PhilTower for the sale of 1,350 telecommunication towers and related passive infrastructure for about P20 billion.
For this year, Globe is allocating $1 billion for its capital expenditures funded by internally generated funds, debts and proceeds from its tower sales.
PhilTower is a local tower company. It builds shared telecommunication infrastructure for mobile operators.
At the stock exchange on Monday, shares in the company closed P40 or 2.23% higher at P1,830 apiece. — Ashley Erika O. Jose
