PLDT Group said Friday it is selling 1,012 telecommunications towers and associated passive infrastructure to Frontier Tower Associates Philippines Inc., a unit of Pinnacle Towers Pte. Ltd., for over P12.1 billion.
PLDT Inc. said in a disclosure to the stock exchange wireless unit Smart Communications Inc. signed a share purchase agreement with Frontier for the telecommunications towers and associated passive telecommunications infrastructure in Luzon.
It said the transaction, set to be completed this year, brings the total number of towers monetized via sale and leaseback transactions to over 7,500 for a total consideration of more than P98 billion.
“This transaction cements our relationship with one of the largest independent tower companies in the country, providing the group with another important partner to support our expansion, while unlocking additional value,” PLDT chairman Manuel Pangilinan said.
UBS AG acted as exclusive financial adviser to PLDT and Smart on the transaction.
PLDT and Smart president and chief executive Alfredo Panlilio said the transaction represents another important milestone in the company’s asset-light strategy focused on operational efficiencies and best-in-class customer experience, supportive of the government’s digital roadmap for the Philippines.
“Our partnership with PLDT is built on a foundation of trust: trust that we can continue to deliver long-term value in operating and expanding PLDT’s world-class network in an environmentally sustainable manner,” said Frontier chairman and chief executive Patrick Tangney.
“This transaction provides a wonderful opportunity for us to enhance digital connectivity and inclusion throughout the Philippines for PLDT and the people of the Philippines,” he said.
Smart also signed a master services agreement with Frontier on similar terms, including tenor and lease rate, as the ones it previously entered into in April and December 2022.
It said that upon completion of the transaction, Smart would lease back the towers for a period of 10 years at competitive terms as the anchor tenant.
The company said the sale and leaseback would be complemented by a commitment of 550 new points of service from Smart over the next few years, enabling it to further expand its network and enhance customer experience.
