Singtel, KKR consortium front runner to buy $1.35 billion stake in data centre provider: Sources
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The KKR-Singtel consortium is competing with a New York investment firm for the stake of up to 20 per cent, sources say.
PHOTO: ST FILE
SINGAPORE - A consortium of US firm KKR and Singtel has emerged as the front runner to buy a minority stake worth US$1 billion (S$1.35 billion) in one of Asia’s biggest data centre providers, two sources with knowledge of the matter said.
The potential investment in ST Telemedia Global Data Centres (STT GDC) reflects growing interest and demand for data centres across the Asia-Pacific as nations and companies respond to the boom in artificial intelligence.
The KKR-Singtel consortium is competing with New York-headquartered alternative investment company Stonepeak for the stake of up to 20 per cent, one of the sources said.
A deal could be sealed or announced in early June, the first source added. The sources declined to be identified as the information is not yet public.
Calling for a brief trading halt just after trading began on May 29 to respond to this report, Singtel said it “confirms that there is no definitive or binding agreement at this time”.
The telco said it “regularly explores and reviews business opportunities, projects and proposals relating to its business and enters into discussions with various parties from time to time. When such discussions occur, there is no certainty that any transaction will arise from these discussions or that any definitive or binding agreement will be entered into pursuant to these discussions”.
“Singtel wishes to advise its shareholders to refrain from taking any action in respect of their shares in Singtel which may be prejudicial to their interests (including relying on speculative information),” it added.
New York-based global investment firm KKR bought a 20 per cent stake in Singtel’s regional data centre business in 2023 for $1.1 billion. In February, KKR announced it had raised US$6.4 billion for a fund focused on Asia-Pacific infrastructure and energy-related assets.
Founded in 2014, STT GDC is one of the fastest-growing data centre providers with operations in Singapore, Britain, Germany, India, Thailand, South Korea, Indonesia, Japan, the Philippines, Malaysia and Vietnam, according to its website.
ST Telemedia, parent of STT GDC, is a Singapore-headquartered strategic investor specialising in assets including communications and data centres, according to its website.
ST Telemedia is wholly owned by Singapore’s investment company Temasek. Singtel shares closed unchanged at $2.46 on May 29. REUTERS
With additional information from The Straits Times
