Canadian firm invests in KKR-backed Philippine telco tower operator

Telco tower from the website of Frontier Towers

MANILA, Philippines — Canadian asset manager British Columbia Investment Management Corp. (BCI) has signed a deal to acquire a minority stake in Pinnacle Towers, a leading independent telecommunications tower backed by global private equity firm KKR.

The parties signed definitive agreements on June 9. Under the deal, BCI will buy the shares in Pinnacle Towers from KKR, which will remain the majority shareholder.

They did not disclose the exact ownership structure arising from the transaction. The deal is expected to be completed by third quarter 2025, subject to customary regulatory approvals.

Pinnacle Towers was established in 2020 to serve the rapidly increasing demand for connectivity and quality
telecommunications infrastructure in the Philippines. Through Pinnacle Towers, KKR invested in the holding company of Frontier Tower Associates Philippines, the tower builder that had earlier partnered with the Aboitiz Group.

Under KKR’s auspices, the portfolio of Pinnacle Towers has grown to 7,000 towers.

KKR invested in local telecom infrastructure after then President Rodrigo Duterte had embraced a “common tower policy”. Under such policy issued in 2019, independent entities can develop shared telecom tower infrastructures to expand wireless network coverage and improve connectivity services across the country.

READ: KKR invests in Philippine common tower industry

Previously, local telecom operators built towers only for their own use. With this policy, key players have been able to monetize their existing infrastructure.

READ: PLDT sells fourth portfolio of cellular towers for P12.1 billion

A “compelling” market

Lincoln Webb, BCI executive vice president and global head for infrastructure and renewable resources, said:
“We are excited to work closely with KKR and Pinnacle’s management team to support the growth of the
business. The Philippines represents a compelling market for long-term capital, especially in essential digital
infrastructure services.”

“This investment aligns with our emerging markets strategy of backing high-quality infrastructure assets alongside strong institutional partners. We look forward to supporting Pinnacle Towers as it continues to enhance digital connectivity and drive meaningful impact across the Philippines,” Webb added in a press statement.

READ: US firm KKR to invest $400 million in Philippines

Pinnacle Towers specializes in build-to-suit telecommunications tower projects, optimizing the use and management of sale-and-leaseback assets with leading mobile network operators. It also provides ancillary management services.

“We are very proud of the success that we have achieved with Pinnacle Towers to serve the Philippines’ connectivity needs. Since our initial investment, we have collaborated closely with Pinnacle Towers’ outstanding management team to deepen the platform’s capabilities and scale its presence organically and through bolt-on acquisitions,” said Projesh Banerjea, KKR managing director for infrastructure.

Strategic partnership

“We are delighted to welcome BCI, who share our long-term vision and commitment to developing critical digital infrastructure, as strategic partners and look forward to building on Pinnacle Towers’ strong growth momentum,” said Banerjea.

Patrick Tangney, chair and CEO of Pinnacle Towers, said with the support of KKR, Pinnacle Towers had grown to be the leading independent tower company in the Philippines in the last five years.

“BCI’s investment marks an important milestone in our journey and is a strong endorsement of our mission. With BCI and KKR as strategic partners, we are well-positioned to continue driving greater digital connectivity in the Philippines and across the region,” he said.

BCI Infrastructure & Renewable Resources has a global portfolio with nine active investments in the Asia-
Pacific region, including Rakuten Mobile (a leading communications tower company in Japan), Altius (a
leading communications tower company in India) and Cube Highways (the largest toll road operator in India).

For its part, KKR’s Asia Pacific infrastructure platform that was established in 2019 has since grown to $13 billion in assets under management. – Doris Dumlao-Abadilla