BRITISH COLUMBIA Investment Management Corp. (BCI) has signed an agreement to acquire a minority stake in Pinnacle Towers, a major telecommunications tower operator in the Philippines.
“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,” Pinnacle Towers Chairman and Chief Executive Officer Patrick Tangney said in a media release on Monday.
BCI will acquire the minority stake in Pinnacle Towers from KKR & Co. Inc., which will remain the company’s majority shareholder.
KKR’s interest in Pinnacle Towers comes from its Asia Infrastructure Funds I and II.
The three parties signed definitive agreements for the transaction on Monday. The deal is expected to be completed by the third quarter of the year, subject to regulatory approvals.
Founded in 2020, Pinnacle Towers operates around 7,000 towers across the Philippines. Its core business focuses on the development and operation of telecommunications infrastructure and related assets.
The platform also specializes in executing build-to-suit telecommunications tower projects and optimizing the use and management of sale-and-leaseback assets with leading mobile network operators.
“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,” said BCI Executive Vice-President and Global Head for Infrastructure and Renewable Resources Lincoln Webb.
Mr. Webb said BCI will continue to support Pinnacle Towers’ efforts to enhance digital connectivity.
BCI’s Infrastructure & Renewable Resources program has nine active investments in the Asia-Pacific region, including Rakuten Mobile in Japan, Altius in India, and Cube Highways, a toll road operator also in India.
Its acquisition of a minority stake in Pinnacle Towers will further expand its presence in Asia.
“The announcement that Canada’s BCI is acquiring a minority stake in KKR-backed Pinnacle Towers marks a significant move in the digital infrastructure space,” Globalinks Securities and Stocks, Inc. Head of Sales Trading Toby Allan C. Arce said in a Viber message.
This investment reflects global trends and underscores the critical role of telecommunications and digital connectivity, Mr. Arce said, adding that Pinnacle Towers stands to benefit from BCI’s financial strength and long-term investment perspective.
“For BCI, this investment underscores its commitment to digital infrastructure, a sector poised for exponential growth due to rising demand for connectivity. By aligning with Pinnacle Towers, BCI reinforces its strategy to diversify its portfolio with assets that promise stable and growing cash flows, especially in emerging markets where digital transformation initiatives are on the rise,” he said.
Globalinks Securities’ Mr. Arce said the move could positively impact the digital infrastructure landscape in the region, as Pinnacle Towers’ expansion may improve mobile network penetration, data speeds, and access to digital services in underserved markets.
China Bank Capital Corp. Managing Director Juan Paolo E. Colet said the transaction signals that the Philippine telecommunications infrastructure sector presents attractive opportunities for long-term institutional investors like BCI.
“The deal could also pave the way for more foreign capital flows into digital infrastructure development and mergers and acquisitions in our country,” Mr. Colet said. — Ashley Erika O. Jose
