CREI Management Services FZE (CREI), a leading global telecom and energy services group, has made significant strides in its strategic growth plans.
The company recently announced the successful sale of its Philippine tower portfolio to Frontier Tower Associates Philippines Inc. (Frontier), a move that aligns with CREI’s broader vision of driving sustainable energy and connectivity solutions across Asia and Africa.
This strategic divestment 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.
Index Partners, a renowned financial advisory firm, played a pivotal role in facilitating this transaction. Leveraging its deep expertise in the digital infrastructure sector, particularly in Southeast Asia, Index Partners served as the exclusive financial advisor to the global telecom and energy company, alongside Global Gate Capital.
Expanding Frontier’s footprint and putting focus on CREI’s core competencies
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.
“We are delighted to have advised CREI on this important transaction,” Index Partners stated in a press release. “This deal underscores our commitment to advancing connectivity and empowering businesses through strategic, innovative transactions in the digital space.”
The partnership between CREI and Frontier signifies 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.
CREI Phils. secures USD70 million for tower expansion
In another significant development, the global telecom and energy company’s Philippine subsidiary, CREI Phils., has successfully secured USD70 million in financing from the IFC and other co-lenders. This funding will be utilized to construct over 600 new telecommunication towers in the Philippines by next year.
This investment underscores the global telecom and energy company’s commitment to expanding its digital infrastructure footprint in the country and contributing to the government’s efforts to enhance mobile connectivity.
By leveraging its extensive experience and strong partnerships, the global telecom and energy company is well-positioned to drive sustainable growth and empower communities through cutting-edge digital solutions.
A bright future for both CREI and Frontier
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.
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.
This Press Release has also been published on VRITIMES