BCI Acquires Minority Stake in KKR's Pinnacle Towers Platform

Key Takeaways

British Columbia Investment Management (BCI) acquired KKR.
Sector: Digital Infrastructure, Telecommunications.
Geography: Philippines.

Analysis

British Columbia Investment Management Corporation (BCI) has entered into a definitive agreement to acquire a minority stake in Pinnacle Towers, a digital infrastructure platform in the Philippines, from KKR. KKR will remain the majority shareholder.

Established in 2020, Pinnacle Towers has rapidly expanded to become the largest independent tower company in the Philippines, operating approximately 7,000 towers. The company specializes in Build-to-Suit (BTS) telecommunications tower projects and manages Sale-and-Leaseback (SLB) assets for leading mobile network operators.

The financial terms of BCI’s minority investment in Pinnacle Towers were not publicly disclosed; however, based on industry benchmarks and infrastructure valuation norms, the deal is estimated to be valued between $300 million and $400 million. This estimate assumes an enterprise value of approximately $1.4 billion for Pinnacle Towers, derived from a conservative valuation of $200,000 per telecom tower across the company’s 7,000-site portfolio in the Philippines. Minority infrastructure investments of this nature typically range from 20% to 40%; applying a mid-range 25% stake suggests BCI’s investment likely falls within this valuation bracket.

Lincoln Webb, Executive Vice President & Global Head of Infrastructure & Renewable Resources at BCI, stated, "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."

Projesh Banerjea, Managing Director of Infrastructure at KKR, commented, "We are delighted to welcome BCI, who share our long-term vision and commitment to developing critical digital infrastructure, as strategic partners."

Patrick Tangney, Chairman and CEO of Pinnacle Towers, added, "With BCI and KKR as strategic partners, we are well-positioned to continue driving greater digital connectivity in the Philippines and across the region."

The transaction is expected to be completed by the third quarter of 2025, subject to customary regulatory approvals.

KKR began its investment in Pinnacle Towers on November 2, 2020, via its Asia Infrastructure Fund. This was KKR’s second infrastructure investment in the Philippines and its fourth overall investment in the country.

Pinnacle Towers was established in 2020 with the goal of becoming the leading independent telecom tower platform in the Philippines. Its main subsidiary, Frontier Tower Associates Philippines, Inc. (FTAP), was among the first to receive a provisional license to operate from the Department of Information and Communications Technology (DICT).

Since then, Pinnacle Towers has scaled to become the largest independent tower company in the Philippines. The platform specializes in Build-to-Suit (BTS) telecom tower projects and manages Sale-and-Leaseback (SLB) assets for major mobile network operators.

In March 2024, KKR announced an additional investment of $400 million to fund the development and acquisition of around 2,000 additional towers in the Philippines, reinforcing its strategic position in digital infrastructure.

The recent minority stake acquisition by British Columbia Investment Management Corporation (BCI) further validates Pinnacle's growth trajectory and the attractiveness of the Philippine telecom infrastructure market for long-term institutional capital.