Globe Telecom : Acquisition or Disposition of Assets

SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-C CURRENT REPORT UNDER SECTION 17
OF THE SECURITIES REGULATION CODE
AND SRC RULE 17.2(c) THEREUNDER 1. Date of Report (Date of earliest event reported) Aug 15, 20222. SEC Identification Number 11773. BIR Tax Identification No. 000-768-480-0004. Exact name of issuer as specified in its charter Globe Telecom, Inc.5. Province, country or other jurisdiction of incorporation Philippines6. Industry Classification Code(SEC Use Only) 7. Address of principal office 27F, The Globe Tower, 32nd street corner 7th Avenue, Bonifacio Global City, TaguigPostal Code16348. Issuer's telephone number, including area code [phone]9. Former name or former address, if changed since last report N/A10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA

Title of Each Class	Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding
Common shares	133,941,497
Total debt	240,045

11. Indicate the item numbers reported herein Disposition of Assets

The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party.

Globe Telecom, Inc.GLO PSE Disclosure Form 4-1 - Acquisition or Disposition of Assets References: SRC Rule 17 (SEC Form 17-C) and
Section 4.4 of the Revised Disclosure Rules

Subject of the Disclosure

Disposition of tower assets

Background/Description of the Disclosure

This is in relation to our disclosures dated 11 August 2022 and 12 August 2022 on the Sale and Leaseback of 5,709 towers amounting to approximately Php71 billion

Date of Approval by Board of Directors

Aug 11, 2022

Rationale for the transaction including the benefits which are expected to be accrued to the Issuer as a result of the transaction

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. Globe expects to recognize an estimated post-tax gain of Php13.5 billion from the transaction (which is subject to change based on the carrying amount of the tower assets at the time of actual sale).

Details of the acquisition or disposition

Date

TBA

Description of the Transaction

Globe signed agreements with MIESCOR Infrastructure Development Corporation ("MIDC") and Frontier Tower Associates Philippines,Inc. (FTAP) for the sale of 5,709 telecommunication towers and related passive infrastructure for approximately Php71 billion. There will be multiple closing dates which will happen as and when closing conditions are met. The first close is targeted to occur in the 3rd quarter of 2022. We will provide updates on the relevant development of the disposal of tower assets in due course.

Manner

Negotiated between the parties

Description of the assets involved

5,709 telecommunication towers and related passive infrastructure

Terms and conditions of the transaction

Nature and amount of consideration given or received

Sale of 5,709 towers amounting to approximately Php71 billion. (2,180 towers to be sold to a subsidiary of Meralco, MIESCOR Infrastructure Development Corporation for approximately Php26 billion and 3,529 towers to be sold to Frontier Tower Associates Philippines, Inc. for approximately Php45 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

Identity of the person(s) from whom the assets were acquired or to whom they were sold

Name	Nature of any material relationship with the Issuer, their directors/ officers, or any of their affiliates
MIESCOR Infrastructure Development Corporation (MIDC)	N/A
Frontier Tower Associates Philippines,Inc. (FTAP)	N/A

Effect(s) on the business, financial condition and operations of the Issuer, if any

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

None

If the transaction being reported is an acquisition, kindly submit the following additional information:

Source(s) of funds

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

Filed on behalf by:

Name	Jose Mari Fajardo
Designation	Director