PLDT subsidiaries Smart Communications and Digital Mobile Philippines struck a sale and leaseback deal with Frontier Tower Associates Philippines, for 1,012 sites worth PHP12.1 billion (US$220.7 million), continuing its tower sale strategy.
In a stock exchange filing, the PLDT said the towers are primarily located on the island of Luzon and expect the deal to be finalised this year.
This deal brings the total number of towers sold and leaseback to over 7,500, which has a total value of PHP98 billion. Upon completing the deal, Smart will take a lease on the towers on a 10-year deal as an anchor tenant. Additionally, 550 new points of service will be launched by Smart over the next few years to expand its network and enhance customer experience.
PLDT chairman Manuel V. Pangilinan said: “This transaction cements our relationship with one of the largest independent tower companies in the country, providing the Group with another important partner to support our expansion, while unlocking additional value.”
PLDT and Smart President/CEO Alfredo S. Panlilio added: “This transaction represents another important milestone in our asset-light strategy focused on operational efficiencies and best-in-class customer experience, supportive of the government’s digital roadmap for the Philippines.”