Two data centre units under the Keppel Corp umbrella have agreed to develop and operate a maiden project in Johor that should be completed by 2020. The project will be undertaken by Keppel Data Centres Holding and Alpha DC Fund.
Keppel Data Centres is a joint venture between Keppel Telecommunications & Transportation (KT&T) and Keppel Land, both subsidiaries of Keppel Corp, with KT&T holding a 70 per cent stake.
Alpha DC Fund is a collaboration between Keppel Data Centres and Alpha Investment Partners, a wholly owned unit of Keppel Corp asset management arm Keppel Capital.
A special-purpose vehicle of Alpha DC Fund owns all the shares of the project company that is undertaking the work to build the data centre on a 261,000 sq ft site in Johor.
KT&T has an effective interest of about 45.7 per cent in the project company at the moment. Under the agreement, the special-purpose vehicle has a put option to require Keppel Data Centres to buy all the shares in the project firm for a sum of cash equal to the agreed property value of the project plus its net asset value less the carrying value. After the put option is exercised, KT&T's stake in the project will be 70 per cent via its interest in Keppel Data Centres.
The special-purpose vehicle has 30 months after the sub-leasing of the site to exercise the put option. The data centre customer also has a call option to buy back the data centre.
Medical technology firm Biolidics Limited, a cancer diagnostic solutions developer formerly known as Clearbridge Biomedics, lodged a preliminary prospectus last Friday for a planned initial public offering (IPO) on the Singapore Exchange's Catalist board.
United Overseas Bank is the sponsor, issue manager and placement agent for the IPO.
An associated company of Catalist-listed Clearbridge Health, Biolidics was incorporated as Clearbridge Biomedics in July 2009 and specialises in developing cell enrichment systems that can be combined with other analytical tests for cancer diagnosis, prognosis, treatment selection and treatment monitoring. Its main product is the ClearCell FX1 System, a fully automated in-vitro diagnostic medical device that separates and enriches cancer cells from blood to perform liquid biopsies.
The IPO proceeds will be used to develop the clinical applications and clinical services customer segment for Biolidics' products, as it has sold them mainly to academic and research institutions so far. It will also expand its product pipeline. The remaining proceeds will be used for general corporate and working capital purposes, and to pay for IPO expenses.