C01752-2024 |
Title of Each Class | Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding | |
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Common Shares | 144,228,604 | |
Total Debt (in Php Mn) | 249,956 |
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Subject of the Disclosure |
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Disposition of tower assets |
Background/Description of the Disclosure |
On 7 May 2023, Globe signed a sale and leaseback agreement with Unity Digital Infrastructure (Unity), a partnership between Aboitiz InfraCapital (AIC) and Partners Group for the sale of 447 towers amounting to approximately Php5.4 billion. |
Date of Approval by Board of Directors |
May 7, 2023 |
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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 7 May 2023, Globe signed a sale and leaseback agreement with Unity Digital Infrastructure (Unity), a partnership between Aboitiz InfraCapital (AIC) and Partners Group for the sale of 447 towers amounting to approximately Php5.4 billion. |
Manner |
Negotiated between the parties |
Description of the assets involved |
447 telecommunication towers and related passive infrastructure |
Nature and amount of consideration given or received |
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Sale of 447 towers amounting to approximately Php5.4 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 |
Name | Nature of any material relationship with the Issuer, their directors/ officers, or any of their affiliates | |
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Unity Digital Infrastructure (Unity) | 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 17 July 2023, Globe closed the sale of 115 towers to Unity Digital Infrastructure (Unity). |
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 | Senior Director |