Tower deals are again in the news in major Asian territories, this time in Pakistan and the Philippines.
Reuters reports that Pakistan's largest conglomerate Engro, through its strategic partnership with global digital operator Veon, is considering expanding telecom tower sharing coverage in Pakistan and exploring different use cases in telecom infrastructure. The use cases, says Reuters, could include electronic vehicle charging and drone landing.
Engro and Veon recently announced plans to pool and manage their infrastructure assets in Pakistan. In this deal Veon’s infrastructure assets housed under Deodar, a Veon Group company, will vest into Engro Corp’s subsidiary, Engro Connect, via a scheme of arrangement. Veon’s digital operator Jazz will continue to lease Deodar’s extensive infrastructure for the provision of nationwide mobile voice and data services under a long-term partnership agreement.
As for the proposed tower sharing deal, this may also involve expanding tower sharing coverage to other operators. Under the partnership, Engro will pay Jazz, Veon's digital operator in Pakistan, US$188 million and will guarantee the repayment of Deodar's intercompany debt of US$375 million.
This remains subject to corporate and regulatory approvals. Deodar has a total tower count of 10,500 in Pakistan. Engro's is estimated at 4,063 towers.
Perceived improvements in the economic climate in the country have apparently led to what is likely to be Engro's largest transaction in Pakistani rupee terms.
In the Philippines a major tower deal has already been agreed. Frontier Tower Associates Philippines and CREI Management Services last week signed an agreement for the purchase and sale of 100% of the shares held by CREI in PH1 Holding FZ-LLC, a UAE-based entity and the parent company of Communication and Renewable Energy Infrastructure CREI Phils Inc. in the Philippines.
This transaction will add over 400 towers to Frontier’s existing portfolio of close to 5,000 towers in the Philippines. Approval from the Philippine Competition Commission (PCC) is expected to be completed in the first quarter of 2025.
