The PLDT Group on Friday sold to Frontier Tower Associates Philippines Inc. 1,012 of its towers and associated telecommunications infrastructure for over P12.1 billion.
The transaction, seen 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,” Manuel V. Pangilinan, PLDT chairman said.
PLDT and Smart President and CEO Alfredo S. Panlilio said this is 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,” Patrick Tangney, chairman and chief executive of Frontier said.
“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 added.
Upon completion, Smart will lease back the towers for a period of 10 years at competitive terms as anchor tenant.
PLDT said the sale and leaseback will be complemented by a commitment of 550 new points of service from Smart over the next few years enabling Smart to further expand its network and enhance customer experience.
UBS AG acted as exclusive financial adviser to PLDT and Smart on this transaction.
