Singapore Press Holdings (SPH) will develop and operate data-centre facilities in Genting Lane under a joint venture with two Keppel Corporation subsidiaries.
SPH told the Singapore Exchange yesterday that its wholly owned unit TPM has incorporated a joint venture company with Keppel units Keppel Griffin and Geras DC.
They will acquire the leasehold interest at 82 Genting Lane for $50 million from another SPH unit.
The joint venture - named Memphis 1 - will develop and run data-centre facilities there.
The agreement involving Memphis 1 and the vendor of the leasehold interest, Singapore News and Publications, gives Memphis 1 the option of buying the leasehold interest in the property.
The leasehold interest sale is expected to be completed on July 17.
TPM will own a 40 per cent stake in Memphis 1.
The shareholder agreement calls for both parties to contribute to the joint venture firm by way of equity and bond subscriptions as well as debt securities.
The Keppel units will contribute up to $209 million, including the $2.1 million subscription price for their 60 per cent holding in the Memphis 1 joint venture and about $34.5 million in bonds.
These will be issued by Memphis 1 and be subscribed by nominees of the Keppel units.
TPM will contribute up to about $139.6 million, including $1.39 million for the 40 per cent stake and $23 million in bonds to be subscribed by its nominee.
The balance will be paid progressively by way of debt securities to be issued by Memphis 1 from time to time, which will be subscribed by nominees of the shareholders.
Keppel Data Centres, together with other entities of Keppel Group, owns and operates a global portfolio of more than 20 data centres in key data centre hubs across the Asia-Pacific and Europe.
SPH shares closed 0.8 per cent down at $1.29 while Keppel Corp stock fell 1.5 per cent to $5.95 yesterday before the announcement.
THE BUSINESS TIMES
