KKR has made an investment in Pinnacle Towers. No financial terms were disclosed. ING was financial advisor to Pinnacle on the deal. Pinnacle invests in, builds and operates telecommunications infrastructure with a focus on towers and related assets in the Philippines market.
MANILA, Philippines–(BUSINESS WIRE)–Global investment firm KKR today announced KKR’s investment in Pinnacle Towers Pte. Ltd. (the “Company” or “Pinnacle”) to advance the Company’s mission to build the leading independent telecom tower platform (“TowerCo”) in the Philippines. Pinnacle’s principal subsidiary is Frontier Tower Associates Philippines, Inc. (“FTAP”).
With the investment, Pinnacle aims to strengthen and expand the Philippines’ telecom infrastructure at a time when Filipino mobile users increasingly demand reliable data-rich, high-speed, affordable connectivity, and more generally to address the rapidly growing demands for telecom infrastructure in and around Southeast Asia. Pinnacle specializes in undertaking build-to-suit telecom tower projects, providing operators with capital-efficient infrastructure solutions to rapidly expand their coverage. The Company is led by a highly experienced senior management team comprising of telecom tower veterans with strong track records in large-scale rollouts in various markets, including in Southeast Asia.
Pinnacle’s subsidiary FTAP is one of the first independent TowerCos in the Philippines to secure a provisional license to operate from the Department of Information and Communications Technology and is a pioneer in the recently liberalized Philippines tower market.
David Luboff, Partner and Head of Asia Pacific Infrastructure at KKR, said, “The telecommunications sector in the Philippines has grown rapidly in the past few years amid the increasing demand for connectivity. This has led to a resource imbalance and the need to expand existing infrastructure to allow operators to provide better service and coverage to their customers. Our investment in Pinnacle reiterates our commitment to addressing this need and supporting the Philippines’ transition to a connected, digital nation. We look forward to assisting the Pinnacle team to deliver the benefits of a more digitally enabled economy to the Filipino people, especially in growing regions such as Visayas and Mindanao.”
Patrick Tangney, Chairman and CEO of Pinnacle, said, “We are thrilled to welcome a global investor of KKR’s caliber to Pinnacle, and look forward to benefiting from the firm’s experience in managing telecom infrastructure projects across the world. KKR’s investment comes at a pivotal time: the Philippines – and Asia more generally – is one of the world’s fastest-growing and most dynamic mobile markets. Improving telecom infrastructure has become a key priority, especially in our current environment. Together with KKR, we look forward to furthering our goal of providing high-quality telecom infrastructure solutions that improve the lives of mobile users in the Philippines and other relevant markets in Asia Pacific.”
KKR made its investments through its infrastructure fund. The investment represents KKR’s second infrastructure investment in the Philippines and the Firm’s fourth overall investment with a focus on the market. Further details of the investment have not been disclosed.
ING acted as Pinnacle’s financial advisor.
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, credit and real assets, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.
About Pinnacle Towers
Pinnacle invests in, builds and operates telecommunications infrastructure with a focus on towers and related assets. Strongly focused on the rapidly growing Philippines market, Pinnacle’s goal is to become a leading telecom infrastructure platform in Asia Pacific. Our leadership team includes founders of a number of highly successful tower companies and former C-level executives from some of the world’s leading wireless operators.