PLDT Inc. announced Friday, March 17, 2023, it sold 1,012 towers for over P12.1 billion to Frontier Tower Associates Philippines Inc.
The price, according to PLDT, mirrors the value of the towers covered by the sale and leaseback transactions announced in April and December 2022.
Following this sale, PLDT said it has now monetized 7,500 towers worth more than P98 billion.
Frontier is a subsidiary of Pinnacle Towers Pte. Ltd., an Asia-focused digital infrastructure platform with a strong focus on the rapidly growing Philippines market, which KKR invested in 2020.
The 1,012 towers being monetized are primarily located in Luzon.
Moreover, PLDT’s subsidiary Smart also entered into a Master Services Agreement with Frontier on similar terms (including tenor and lease rate) as the Master Services Agreements previously entered into by Smart in relation to the sale and leaseback transactions announced in April and December 2022.
“Upon completion of the transaction, Smart will lease back the towers for a period of 10 years at competitive terms as the anchor tenant. 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,” PLDT told the local bourse.
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. / KOC