PLDT will sell 2,973 towers and related passive assets to a unit of Edotco Group and 2,934 towers to a unit of EdgePoint, representing about half its telecom towers.

PLDT will lease the towers back for 10 years as the main tenant. The transactions are expected to be concluded in the fourth quarter of this year.

The deal is the largest purchase of Philippine assets by foreign investors, PLDT said. The sale will allow the company to improve its cash position and reduce its debt after it boosted its capital spending ahead of competition with China Telecom-backed Dito Telecommunity, which launched services last year.

“We expect to reap benefits in terms of a valuation uplift and capital reallocation, with PLDT applying the proceeds to deleverage, further invest in the network and return cash to shareholders via a special dividend,” PLDT chairman Manuel Pangilinan said in a statement.

The Philippines, which lags behind among its big Southeast Asian peers in terms of tower density, has pushed for tower-sharing arrangements to improve telecom services and cut expansion costs in the archipelago.

Edotco Group, which is majority-owned by Axiata Group, manages over 54,000 towers across nine countries in Asia, while EdgePoint owns approximately 10,000 towers across Indonesia and Malaysia.

The deal, once completed, will make the two the largest tower companies in the Philippines.

“This transaction presents a highly strategic acquisition for Edotco, as it diversifies and strengthens our pan-Asian platform with exposure to a nascent, high-growth market with strong governmental support,” said Adlan Tajudin, CEO of Edotco Group.

Swiss bank UBS advised PLDT on the transaction.