PLDT, the Philippines’ largest telecom company, has signed a deal to sell another 650 cellular towers to independent tower firm Unity Digital Infrastructure (Unity) for 9.2 billion pesos (about $165 million), according to a disclosure.
The agreement, signed by PLDT’s subsidiaries Smart Communications and Digital Mobile Phils, will also see Smart leasing back the towers for 10 years as the anchor tenant.
The latest deal brings the total number of PLDT towers to be sold via sale and leaseback transactions to over 6,500 valued at more than 86 billion pesos, according to PLDT’s filing with the Philippine Stock Exchange on Friday.
Unity, the buyer in the latest tower deal, is an independent tower company backed by Aboitiz InfraCapital and Swiss private markets firm Partners Group. It is an existing partner of the PLDT Group.
In April, PLDT said it will sell 2,973 towers and related passive assets to a unit of Edotco Group and 2,934 towers to a unit of EdgePoint, representing about half its telecom towers.
The 650 towers being monetised are primarily located in the Visayas and Mindanao.
PLDT further said the latest sale and leaseback deal will be complemented by a new tower build commitment of 220 towers over the next few years, enabling Smart to further expand its network.
“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,” said PLDT chairman Manuel V. Pangilinan.
Closing of the transaction will be staggered based on the number of towers being transferred and subject to customary closing conditions. All closings are expected to be completed in 2023.
Lagging behind its big Southeast Asian peers in terms of tower density, the Philippines has pushed for tower-sharing arrangements to improve telecom services and cut expansion costs in the archipelago.
The transaction supports the Philippine Department of Information and Communications Technology’s policy of promoting the use of common towers for a more cost-efficient tower rollout across the country that will enhance connectivity and better customer experience.
The country has among the world’s most prolific users of mobile internet and social media.