PLDT signs deals to sell 5,907 towers to 2 companies for P77b

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PLDT Inc. said Tuesday it signed deals to sell its telecom towers and related infrastructure to two companies for P77 billion. Tap here:

PLDT said subsidiaries Smart Communications Inc. and Digitel Mobile Philippines Inc. signed sale and purchase agreements with a subsidiary of edotco Group and a subsidiary of EdgePoint, which are supported by international groups with extensive experience in the telecom tower space.

It said that in addition to space, the TowerCos would also be responsible for providing operations and maintenance services and power to the sites. Smart secured competitive terms as the anchor tenant on the towers and expects to benefit from operational and capital expenditure savings.The sale and leaseback will be complemented by a new tower build commitment of 1,500 towers over the next few years.

“We expect to reap benefits in terms of a valuation uplift and capital reallocation with PLDT applying the proceeds to deleverage, further invest in the network, and return cash to shareholders via a special dividend,” he said.

 

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