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Singtel-KKR a frontrunner to take a minority stake of US$1 bil in STT GDC, according to Reuters (update)

The Edge Singapore
·2-min read

Both Singtel and STT GDC are Temsaek-backed

A Singtel-KKR consortium is a frontrunner to buy a minority stake of US$1 billion in STT Global Data Centres, reported Reuters on May 28.

Another potential buyer is Stonepeak, a US-based alternative investment firm, according to Reuters, citing various sources.

In its statement via the stock exchange on May 28, Singtel says that 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, and Singtel confirms that there is no definitive or binding agreement at this time," says Singtel.

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According to Bloomberg in January, STT GDC was reportedly looking to raise US$1 billion to fund its expansion ahead of its oft-talked-about IPO that will give it a market cap of some US$5 billion.

Potential bidders mentioned included Apollo, Blackstone, and Stonepeak Partners as well as the KKR-Singtel.

Singtel's controlling shareholder is Temasek Holdings, and STT GDC is backed by Temasek as well.

STT GDC operates in markets ranging from Singapore, the UK, Germany, India, Thailand, South Korea, Indonesia, Japan, the Philippines, and Malaysia

Most recently on April 12, it held the groundbreaking for its second data centre facility in Tokyo – STT Tokyo 2.

Across the region, growing demand for computing power, mainly driven by AI applications, has fuelled demand for data centres.

Singtel is already in a partnership with KKR to grow its regional data centre portfolio. Singtel now runs a total data centre capacity of more than 50 MW and has articulated plans to reach more than 200 MW.

/Update

In a May 29 statement, Singtel said that it will make the relevant disclosures, if any, "at the appropriate time".

"Singtel regularly explores and reviews business opportunities, projects and proposals relating to its business and enters into discussions with various parties from time to time," says the telco. "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, and Singtel confirms that there is no definitive or binding agreement at this time."

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