CREI Management Services FZE (CREI), a global telecom and energy services group, has successfully agreed to sell its Philippine tower portfolio to Frontier Tower Associates Philippines Inc. (Frontier), a Towerco operator backed by KKR.
This strategic divestment marks a key milestone in CREI’s broader vision to drive sustainable energy and connectivity solutions across Asia and Africa.
CREI and Index Partners: A key role
Index Partners, a leading financial advisory firm, played a pivotal role in this transaction, serving as the exclusive financial advisor to CREI, alongside Global Gate Capital. The firm’s deep expertise in the digital infrastructure sector, particularly in Southeast Asia, was instrumental in facilitating this complex deal.
“We are pleased to have advised CREI on this important transaction,” stated Index Partners in a press release. “This deal underscores our commitment to advancing connectivity and empowering businesses through strategic, innovative transactions in the digital space.”
This strategic divestment also marks a key milestone in the global telecom and energy company’s broader vision to drive sustainable energy and connectivity solutions across Asia and Africa.
A powerhouse partnership
The sale involves the transfer of 100% of the shares in PH1 Holding FZ-LLC, the parent company of Communication and Renewable Energy Infrastructure CREI Phils Inc.
This transaction also involves the transfer of over 400 telecom towers to Frontier, adding to its existing network of nearly 5,000 towers and boasting a colocation ratio of 1.25x.
This acquisition also puts Frontier in a better position to capitalize on the Philippines’ growing demand for 5G adoption and digital connectivity, thus solidifying its position as a major player in the country’s telecommunications infrastructure landscape.
According to the latest Ericsson Mobility Report, 5G adoption stands at about 9% of mobile subscriptions, signalling significant room for growth. One key area of potential is Fixed Wireless Access (FWA), especially in the rural areas where infrastructure for fixed broadband remains limited.
By divesting its Philippine tower portfolio, the global telecom and energy company aims to focus on its core competencies in sustainable energy and connectivity solutions. This strategic move enables the company to allocate resources to high-growth areas and drive innovation in emerging markets.
CREI’s decision to divest its Philippine tower portfolio aligns with its broader strategic goals. By focusing on its core competencies in sustainable energy and connectivity solutions, CREI is well-positioned to continue its growth trajectory in emerging markets.
A win-win for all
CREI’s decision to divest its Philippine tower portfolio aligns with its broader strategic goals. By focusing on its core competencies in sustainable energy and connectivity solutions, CREI is well-positioned to continue its growth trajectory in emerging markets.
For Frontier, on the other hand, this acquisition represents a significant step forward in its mission to build and operate critical telecommunications infrastructure in the Philippines. Backed by the global investment firm KKR, Frontier is poised to capitalize on the country’s growing demand for digital connectivity.
In the end, the partnership between CREI and Frontier is a testament to the increasing importance of telecommunications infrastructure in driving economic growth and social development.
As the world becomes increasingly interconnected, investments in digital infrastructure will continue to play a vital role in shaping the future. As Jan Michael Jaudian, the Head of Customer Engineering for the Philippines and Vietnam at Google puts it, “Technology serves as both a catalyst and toolkit for solving real-world problems. The talent, creativity, and drive displayed during our most recent hackathon reaffirm how technology can be harnessed to build solutions that leave a lasting impact on communities.”
About CREI
Communication & Renewable Energy Infrastructure (“CREI”) is an established asset management company holding a portfolio of telecom tower and renewable power assets across Africa and Asia.
Its main activities entail providing sustainable energy and connectivity to Mobile Network Operators (MNOs) and rural communities across developing countries.
CREI capitalizes on the expertise and synergies created throughout its group of affiliated companies to provide a one-stop-shop for Operators and Investors and deliver efficient solutions that are integrated along the value chain.
CREI manages a portfolio of Telecom ESCO, TowerCo and Network as a Service (NAAS) projects with the aim to help Mobile Network Operators decrease their carbon footprint while improving their network performance and reach. CREI is part of a global telecom services group, TwoThirtyThree Holding Group.
