C06408-2023 |
Title of Each Class | Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding | |
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Common shares | 144,060,544 | |
Total debt (in Php Mn) | 234,500 |
The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.
Subject of the Disclosure |
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Disposition of tower assets |
Background/Description of the Disclosure |
This is in relation to our disclosures dated 11 August 2022,12 August 2022 and 15 August 2022 on the Sale and Leaseback of 5,709 towers amounting to approximately Php71 billion. |
Date of Approval by Board of Directors |
Aug 11, 2022 |
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Rationale for the transaction including the benefits which are expected to be accrued to the Issuer as a result of the transaction | |
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This transaction will allow Globe to efficiently raise capital, redeploy capital from passive infrastructure to active equipment, improve balance sheet health, and leverage expertise of tower companies. |
Date | TBA |
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Description of the Transaction |
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On 11 August, 2022, Globe signed agreements with MIESCOR Infrastructure Development Corporation (“MIDC”) and Frontier Tower Associates Philippines,Inc. (FTAP) for the sale of 5,709 telecommunication towers and related passive infrastructure for approximately Php71 billion. |
Manner |
Negotiated between the parties |
Description of the assets involved |
5,709 telecommunication towers and related passive infrastructure |
Nature and amount of consideration given or received |
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Sale of 5,709 towers amounting to approximately Php71 billion (2,180 towers to be sold to a subsidiary of Meralco, MIESCOR Infrastructure Development Corporation for approximately Php26 billion and 3,529 towers to be sold to Frontier Tower Associates Philippines, Inc. for approximately Php45 billion.) |
Principle followed in determining the amount of consideration |
The parties determined the selling price after negotiations. |
Terms of payment |
There will be multiple closing dates which will happen as and when closing conditions are met. |
Conditions precedent to closing of the transaction, if any |
The specific closing conditions are part of the Sale and Leaseback Agreement and covered by confidentiality obligation. |
Any other salient terms |
N/A |
Effect(s) on the business, financial condition and operations of the Issuer, if any |
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The transaction will result in availability of funds for Globe to support future capital expenditures, debt repayments and debt avoidance with the expectation to improve the balance sheet health of the company. |
Other Relevant Information |
This disclosure was amended to include an update on the transaction whereby on 23 September 2022, Globe achieved the first closing for the sale of 800 towers to Frontier Towers. |
Source(s) of funds |
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N/A |
If any asset so acquired by the issuer or its subsidiaries constituted plant, equipment or other physical property, state the nature of the business in which the assets were used by the persons from whom acquired and whether the issuer intends to continue such use or intends to devote the assets to other purposes, indicating such other purposes |
N/A |
Name | Jose Mari Fajardo |
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Designation | Director |