Canada’s BCI to amass minority stake in Pinnacle Towers

STOCK PHOTO | Image by Aopsan from Freepik

BRITISH COLUMBIA Investment Management Corp. (BCI) has signed an agreement to amass a minority stake in Pinnacle Towers, a significant telecommunications tower operator within the Philippines.

“BCI’s investment marks a crucial milestone in our journey and is a robust endorsement of our mission. With BCI and KKR as strategic partners, we’re well-positioned to proceed driving greater digital connectivity within 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 can remain the corporate’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 predicted to be accomplished by the third quarter of the yr, subject to regulatory approvals.

Founded in 2020, Pinnacle Towers operates around 7,000 towers across the Philippines. Its core business focuses on the event and operation of telecommunications infrastructure and related assets.

The platform also focuses on 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 marketplace 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 proceed to support Pinnacle Towers’ efforts to reinforce digital connectivity.

BCI’s Infrastructure & Renewable Resources program has nine energetic investments within 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 big move within 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 profit 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 attributable to rising demand for connectivity. By aligning with Pinnacle Towers, BCI reinforces its technique to diversify its portfolio with assets that promise stable and growing money 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 within 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 best way for more foreign capital flows into digital infrastructure development and mergers and acquisitions in our country,” Mr. Colet said. — Ashley Erika O. Jose