PLDT SELLS MORE TOWER ASSETS VIA P 9.2-B DEAL

PLDT Inc. continues to unload its tower assets with the signing of a P9.2-billion sale and leaseback agreement with an Aboitiz-backed tower company, a move seen to make the telecommunication player’s operations more cost-efficient.

In a disclosure on Friday, the Pangilinan-led company announced it inked the deal with Unity Digital Infrastructure Inc., which is backed by Aboitiz Infracapital and global private market investment firm Partners Group, covering 650 towers in the Visayas and Mindanao. Unity is also an existing partner of the PLDT Group.

leaseback period is 10 years, which will begin upon the completion of the transaction. Unity also committed to build 220 towers for PLDT over the next few years.

The deal, which is expected to be completed next year, came after PLDT expressed interest to sell another portfolio of towers last month.

In April, PLDT signed a P77-billion sale and leaseback deal for 5,907 towers with edotco Group unit ISOC edotco Towers Inc. and EdgePoint subsidiary Comworks Infratech Corp. About 75 percent of these towers were transferred to the buyers, with the listed telco receiving P57.7 billion in cash.

Following the recent transaction, PLDT has now placed than 6,500 towers, amounting to a total of P86 billion, under a sale and leaseback deal. Its competitor Globe Telecom, meanwhile, has sold 7,059 towers for P91 billion.

“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,” PLDT chair Manuel V. Pangilinan said.

PLDT and Smart president and CEO Alfredo S. Panlilio said the transaction would yield “further enhancements to our network quality, service excellence and customer experience across the Visayas and Mindanao.”

“Our mission is to ensure better connectivity for all Filipinos across the country with the deployment of more towers in the next five years,” Unity CEO Robin Sarmiento said.

Fitch Group unit CreditSights earlier said the transaction would provide “greater financial buffer for deleveraging and capex funding needs” for the Pangilinan-led firm. This year, PLDT earmarked P85 billion in capital outlays.

PLDT saw its net income in the nine months through September improve by 45 percent to P27.4 billion due to the performance of its enterprise and home business segments, alongside a one-time gain from the sale of towers.