MIESCOR Infrastructure Development Corporation (MIDC), a joint venture between Manila Electric Co. (Meralco) subsidiary MIESCOR and leading global infrastructure investor Stonepeak, announced that it will acquire 2,180 towers and related passive telecom infrastructure from Globe under a sale and leaseback agreement valued at P26.2 billion.
MIDC and Globe likewise executed a Master Lease Agreement under which Globe will be the anchor tenant of the telco towers at a monthly rate of P100,000 per tower for an initial period of 15 years. Globe also provided a firm commitment for additional 750 build-to-suit towers over a period of four years.
The deal marks a significant milestone for MIDC, which aspires to become a major player in the common tower space by servicing the country’s leading mobile network operators. MIDC holds a license from the Department of Information and Communications Technology (DICT) to operate
as an independent tower company.
The company is backed by MIESCOR’s expertise in the engineering, procurement, and construction business and Stonepeak’s extensive investing experience in towers and other digital infrastructure globally. The two partnered in late 2021 to actively pursue telco tower opportunities in the region.
“We are delighted to partner with MIESCOR and the MIDC team on this exciting opportunity with Globe,” said Stonepeak Senior Managing Director and Head of Asia and the Middle East Hajir Naghdy. “This transaction is a great fit for our Asia Infrastructure strategy, which targets investments across energy transition, transportation and logistics, and communications and digital infrastructure, and represents a significant milestone for our growing Asia Pacific business.”
For his part, Meralco President and CEO Ray C. Espinosa said: “We are very pleased with this landmark deal with Globe that marks a critical milestone in MIESCOR’s strategy to enter the digital infrastructure space, which plays a vital role in driving economic growth and social well-being through digital inclusion.”
“This also gives us the momentum to pursue more opportunities that will help us achieve our aspiration to become a trusted telco tower operator in the Philippines and eventually, a market leader in the digital infrastructure business,” Espinosa, who also sits as Chairman of MIDC, added.
The first close of the transaction is targeted within the third quarter of this year, with subsequent closings to follow once closing conditions are met.
AlphaPrimus Advisers acted as Financial Advisor, while Gibson Dunn and ACCRA Law acted as legal counsel for MIDC.