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Globe sells Philippine mobile towers for US$1.28bn
Philippine digital platform company Globe has sold over 5,000 mobile towers in the Philippines to two companies for approximately US$1.28 billion.
Lauren Croft
Firm: Herbert Smith Freehills (Globe)
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Deal: Herbert Smith Freehills has advised Globe Telecom, a pre-eminent Philippine digital platform company, on the sale of 5,709 mobile towers for an anticipated PHP71 billion (approximately US$1.28 billion).
Value: US$1.28 billion
Area: Corporate
Key players: The HSF team was led by Singapore-based partner Mark Robinson and corporate partner Jamie McLaren, with assistance from Singapore counsel Victor Chiew and Kathryn Thornton, senior associate Theodore Heng and associate Pamela Wong, and Kuala Lumpur associate Audrey Siew.
Deal significance: In addition to the deal, Globe has also announced plans to sell a further batch of mobile towers, which together would represent the largest ever mobile towers transaction in the Philippines.
Under agreements signed on 11 August 2022, Frontier Tower Associates Philippines (FTAP) will acquire 3,529 mobile towers, and Miescor Infrastructure Development Corporation (MIDC) will acquire another 2,180.
Globe has major interests in telecommunications, financial technology, digital marketing solutions, venture capital funding for start-ups, corporate venture building, virtual healthcare and providing support to entertainment. Its principal shareholders are Ayala Corporation and Singtel.
“We have very much enjoyed supporting Globe on such an important and significant transaction,” Mr Robinson said.
“The Philippines telecoms market has undergone significant changes over recent years, with the introduction of a new mobile network operator and the establishment of an independent mobile towers market. It has created significant opportunities for international investors as well as local companies.”
Mr McLaren added that “a number of these new mobile tower companies in the Philippines will now be able to operate at significant scale, which will support the country’s aim to deploy additional mobile towers and improve communications”.
“Doing so is critical in a country that already ranks highest in the world for time spent online and on social media, but where many regions are still under-served in terms of connectivity,” he said.
