The deal is on track to become the biggest mobile towers transaction in the Philippines
Herbert Smith Freehills (HSF) has advised digital platform company Globe Telecom Inc. on the ~US$1.28bn sale of 5,709 mobile towers in a deal that is on track to become the biggest mobile towers transaction in the Philippines.
Under the terms of the sale, Frontier Tower Associates Philippines, Inc. (FTAP) will take ownership of 3,529 mobile towers, while Miescor Infrastructure Development Corporation (MIDC) will take over the remaining 2,180. FTAP is backed by global investment firm KKR and digital infrastructure platform Pinnacle Towers. Meanwhile. MIDC is a joint venture between alternative investment firm Stonepeak and construction engineering company Meralco Industrial Engineering Services Corporation.
The deal is expected to promote connectivity to underserved regions in the Philippines.
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“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,” HSF co-lead partner Mark Robinson said.
Singapore corporate partner Jamie McLaren, who headed the firm’s team alongside Robinson, added, “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 communication. 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.”
Robinson and McLaren were assisted by Singapore counsel Victor Chiew and Kathryn Thornton; senior associate Theodore Heng and associate Pamela Wong; and Kuala Lumpur associate Audrey Siew.
HSF recently advised on several mobile tower deals in Indonesia, including the US$1.17bn sale of Solusi Tunas Pratama, the US$750m sale of Indosat Ooredoo and the US$434m sale of Telkomsel.