US private equity firm I Squared Capital is in discussions to acquire telecom tower assets in a deal that could be valued at up to $3 billion. Bloomberg reported that previous negotiations with EdgePoint Infrastructure stalled over valuation disagreements, but discussions have now resumed.
The assets in question span Indonesia, Malaysia, and the Philippines, with I Squared particularly interested in the Malaysian and Philippine towers, which are collectively valued at around $2 billion. Elsewhere, EdgePoint’s Indonesian holdings are estimated at approximately $1 billion.
TowerXchange estimates that EdgePoint operates around 15,200 telecommunications towers in Southeast Asia, and currently supports more than 25,200 tenants across its sites. The towerco is backed by DigitalBridge, along with the Abu Dhabi Investment Authority and the International Finance Corporation.
“We have got to the stage, without DigitalBridge, where we are almost self-funding from an organic point of view. Investors are always thinking about when they are moving in and out of investments. But what we have built is a very strong business with lasting foundations.” Suresh Sidhu, CEO of EdgePoint, told TowerXchange in November.
Beyond potential asset sales, EdgePoint is actively exploring expansion opportunities in Thailand and Vietnam, markets Sidhu described as having similar growth dynamics to its existing sector. "They're large countries, lots of population, very similar dynamics to Malaysia, Indonesia, Philippines, young populations, fast growth in data, tech, that sort of sector as well," Sidhu recently told Reuters.
The company also plans to increase its current portfolio by more than 5,000 towers over the next two to three years, further solidifying its presence across the region.
If finalised, the deal would mark a significant move for EdgePoint and particularly for I Squared Capital, strengthening its position in the fast-growing digital infrastructure sector in Southeast Asia.
