Milbank LLP advised telecommunications provider PLDT Inc. and its subsidiaries Smart Communications, Inc. and Digitel Mobile Phils., Inc. on the sale of 1,012 telecom towers and related passive infrastructure to Frontier Tower Associates Philippines Inc. (“Frontier”), a leading independent tower company in the Philippines and also a portfolio company of KKR, for a consideration of approximately PHP12bn. This is the fourth sale by Smart and DMPI of their tower portfolios since last year, all of which Milbank has advised on.
PLDT is the Philippines’ largest integrated telecommunications provider with one of the largest market capitalizations of companies listed on the Philippine Stock Exchange. The acquisition of existing towers and development of new towers accelerates Frontier’s goal of becoming a major player in the local common tower industry.
Under the terms of the sale and purchase agreement, signed on March 16, 2023, Frontier will acquire 1,012 towers. Smart has also entered into a 10-year leaseback for the sold towers and committed to building additional towers in the interim period. Completion of the transaction is subject to regulatory approval.
The Milbank deal team was led by Hong Kong-based Global Corporate partner Andrew Whan and Singapore-based Global Capital Market partner Giles Kennedy, along with Global Corporate associates Joyce Chin (Hong Kong) and Michelle Lam (Hong Kong) and Global Capital Market partner Terrence O’Donnell (Singapore) and associate Andre Seah (Singapore).
March 17, 2023
