KKR and Singtel to fully acquire STT GDC for $5.1bn

A consortium led by KKR and comprising Singtel has agreed to get the remaining 82% involvement successful ST Telemedia Global Data Centres (STT GDC) from founding shareholder ST Telemedia, for S$6.6bn ($5.1bn).

The woody values the information centre institution astatine an endeavor worth of astir S$13.8bn ($10.9bn), which includes existing leverage and superior expenditure commitments.

Following completion of the transaction, KKR volition clasp a 75% stake, and Singtel volition ain 25% of STT GDC, reflecting the conversion of some parties’ existing redeemable penchant shares successful the company.

The transaction follows an archetypal concern successful 2024, erstwhile KKR and Singtel contributed S$1.75bn done penchant shares and warrants into STT GDC, marking what was past Southeast Asia’s largest integer infrastructure investment.

KKR Asia Pacific co-head David Luboff said: “This transaction represents a uncommon accidental to further enactment a high-quality level and deepen our strategical concern with Singtel.

“We look guardant to deploying KKR’s planetary web and heavy integer infrastructure expertise to assistance STT GDC accelerate its adjacent signifier of sustainable, planetary growth.”

Since this investment, STT GDC has accrued its pipeline capableness from 1.4GW to implicit 1.7GW.

Singtel radical main fiscal serviceman Arthur Lang said: “This acquisition is simply a important measurement towards scaling our caller maturation motor successful integer infrastructure arsenic mapped retired successful our Singtel28 maturation plan.

“We volition proceed to workout subject successful superior allocation and measure superior recycling alternatives to money maturation and support equilibrium expanse efficiency. Our dividend and maturation plans nether Singtel28 stay intact.”

Founded successful 2014 by ST Telemedia and headquartered successful Singapore, STT GDC operates successful 12 large markets crossed Asia Pacific, the UK and Europe, with a full plan capableness of 2.3GW.

The institution offers colocation, connectivity, and enactment services to clients handling AI and unreality workloads that necessitate important information processing resources.

STT GDC president and radical CEO Bruno Lopez said: “This expanded concern from KKR and Singtel underscores their assurance successful the prime of STT GDC’s concern and its maturation trajectory and volition further accelerate our ngo to present the captious infrastructure powering tomorrow’s integer economy.

“With the consortium’s planetary expertise, determination networks, fiscal spot and, astir importantly, our shared ambition, STT GDC is poised to standard rapidly and seizure the adjacent question of important maturation successful unreality and AI demand.”

Completion of the acquisition remains taxable to regulatory approvals and modular closing conditions.