Herbert Smith Freehills advised Globe Telecom on sale of mobile towers in Philippines
Herbert Smith Freehills advised Globe Telecom on sale of mobile towers in Philippines
The transaction was worth US$1.28 billion
Leading international law firm Herbert Smith Freehills has advised Globe Telecom, a digital platform company in the Philippines, on the sale of 5,709 mobile towers.
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 country.
Under the recently signed agreements, while Frontier Tower Associates Philippines (FTAP) would acquire 3,529 mobile towers, Miescor Infrastructure Development Corporation (MIDC) would attain 2,180 mobile towers.
Globe has major interests in telecommunications, financial technology, digital marketing solutions, venture capital funding for startups, corporate venture building, virtual healthcare and providing support to entertainment. Its principal shareholders are Ayala Corporation and Singtel.
FTAP is backed by KKR (a leading global investment firm) and Pinnacle Towers (an Asia-focused digital infrastructure platform). MIDC is a joint venture between Stonepeak (a leading alternative investment firm specializing in infrastructure and real assets) and Meralco Industrial Engineering Services Corporation (a subsidiary of Manila Electric Company – the largest private sector electric distribution utility company in the Philippines).
Mark Robinson, the Singapore-based global TMT sector co-lead remarked, "We enjoyed supporting Globe on such an important and significant transaction. 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."
Jamie McLaren, the Singapore corporate partner added, "A number of these new mobile tower companies in the Philippines will now be able to operate at a 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."
Robinson and Mclaren led the team that advised Globe, with assistance from Singapore counsel Victor Chiew and Kathryn Thornton, senior associate Theodore Heng and associate Pamela Wong, and Kuala Lumpur associate Audrey Siew.
