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KKR and Singtel to buy over ST Telemedia's Global Data Centres; Singtel shares up nearly 5%

The Edge Singapore
The Edge Singapore  • 2 min read
KKR and Singtel to buy over ST Telemedia's Global Data Centres; Singtel shares up nearly 5%
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Investment firm KKR & Co and Singapore Telecommunications (Singtel) are reportedly in advanced talks to buy more than 80% of ST Telemedia Global Data Centres, according to Reuters, citing sources it did not name.

If this deal materialises, KKR and Singtel, which are already in an existing venture to build data centres together, will gain full ownership over GDC, for over $5 billion.

KKR currently owns about 14% of GDC while Singtel has a stake of more than 4%.

The rest of GDC is held by ST Telemedia, wholly owned by Temasek Holdings, which is also the controlling shareholder of Singtel.

According to Reuters, if successful, the deal would rank among Asia's biggest data centre transactions, with the boom in artificial intelligence creating soaring demand for digital infrastructure.

In a statement the following day, Singtel says that it regularly explores and reviews business opportunities, projects and proposals relating to its business and investments.

See also: CLI raises $150 mil for India data centre fund, acquires 20.2% stake in three data centres for $99.73 mil

It acknowledges that as part of a consortium which it did not specify who the other partners are, it is having ongoing discussions in relation to STT GDC.

Nonetheless, there is no certainty that such discussions will lead to any definitive or binding agreement and that it will make the required disclosures when needed.

Singtel shares as at 9.11 am, trades at a record $4.73, up 5.11% for the day, extending year to date gain of 53.07%.

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