KKR Buys Stake In PangeaCo, Build Fiber Optic Network Platform

KKR & Co Inc KKR disclosed a deal to acquire a majority stake in PangeaCo and the existing fiber optic networks of Telefonica del Peru SAA CPNBF and Entel Perú.

As per the deal, KKR will buy a stake in PangeaCo, which will subsequently acquire the existing fiber optic networks of Telefónica del Perú and Entel Perú. 

KKR is making the investment through its KKR Global Infrastructure Investors III fund. The financial terms were not disclosed.

The deal will combine the existing fiber optic networks of PangeaCo, Telefónica del Perú, and Entel Perú into an independent company controlled by KKR. 

Through the combination of these networks, KKR will establish ON*NET Fibra de Perú as the new name for the platform, which will independently build and operate the largest fiber optic network with world-class quality standards. 

KKR will own a 54% stake in ON*NET Fibra de Perú, with Telefónica Hispanoamérica and Entel Perú holding 36% and 10%, respectively. 

The company also intends to invest around $200 million to more than double the ultra-fast fiber network to reach 5.2 million homes across 86 provinces (from over 2 million homes passed YTD) by 2026.

Also Read: KKR Collaborates with PayPal in a Multi-Year €3B Deal to Accelerate BNPL Loan Originations in Europe

In Q1, KKR's assets under management rose 6% Y/Y to $510 billion, with organic new capital of $12 billion raised in Q1 2023, and book value per adjusted shares fell 4% Y/Y to $27.65 in the quarter.

Price Action: KKR shares closed lower by 2.46% at $53.91 on Thursday.