KKR and Singtel are nearing a deal to buy over the controlling stake in ST Telemedia Global Data Centres in a deal that values the assets at more than $13 billion, according to the Wall Street Journal.
Talks are at a very advanced stage, and an announcement could be made soon, according to the Journal, citing "people familiar with the matter".
ST Telemedia, the parent company which is itself a Temasek unit, now owns 80% of STT GDC, with the KKR-led group holding the rest.
Singtel is majority held by Temasek too.
Back in 2024, KKR and Singtel had already acquired a stake of 18.3% in STT GDC for about US$1.3 billion. KKR holds the bigger share at 14.1% while Singtel holds 4.2%.
News of KKR and Singtel further increasing their investments was reported last November.
See also: STT GDC launches power testbed to prepare data centres for AI-era loads
In its announcement to the stock exchange Feb 1, Singtel reiterates that it regularly explores and reviews business opportunities, projects and proposals relating to its business and investments.
"Singtel, as part of a consortium, continues to have discussions in relation to STT GDC.
"While these discussions are at an advanced stage, there is no certainty that such discussions will lead to any definitive or binding agreement."
As indicated on its website, STT GDC has more than 100 data centres worldwide, with a combined capacity of more than 2.3 GW.
STT GDC was set up in 2014 as part of ST Telemedia's active push into the data centre space. It grew rapidly via a series of acquisitions, including Virtus in 2017, which gave it a strong foothold in UK and other parts of Europe.
Singtel and KKR are already in their own data centre venture, which is poised to be a new key growth engine for the telco.
Most notably, a new data centre at Tuas will add another 58 MW when it comes on stream later this year. The addition of STT GDC's assets will create a much bigger data centre powerhouse.
Back in Sept 2023, KKR invested $1.1 billion for a 20% stake in Singtel's data centre unit Nxera. Under terms of the agreement, KKR has the option to increase its stake to 25% by 2027.
Singtel shares closed at $4.59 on Jan 30, up 0.44%.
