Discover the Game-Changing Deal: Singtel's Surprising Sale of 20% Stake in Data Centre Unit to KKR

2023-09-18 07:19:09

Singtel Offloads 20% Stake in Data Centre Unit to KKR

Singapore-based Singtel has reached an agreement with investment company KKR to sell a 20% stake in its regional data centre unit for SGD1.1 billion ($808.5 million). The funds will be used to accelerate the expansion of the business across Southeast Asia.

This strategic deal values Singtel's data centre business at SGD5.5 billion, with KKR having the option to increase its stake to 25% by 2027 at a pre-agreed valuation.

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The transaction is expected to close in Q4, subject to standard regulatory approvals and closing conditions.

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Singtel highlighted that this collaboration enables it to tap into KKR's expertise in investing in data centres and critical telecoms infrastructure globally, in addition to capital.

The data centre business is part of Singtel's Digital InfraCo unit, which was established in 2023 and has operations in Singapore, Indonesia, and Thailand. The company also has plans to expand into Malaysia and other markets in the region.

"The deal with KKR is another step towards advancing our strategic reset," said a Singtel representative.

Key Takeaways:

1. Singtel has sold a 20% stake in its data centre unit to KKR for SGD1.1 billion.
2. The funds will be used to accelerate the expansion of Singtel's data centre business in Southeast Asia.
3. KKR has the option to increase its stake to 25% by 2027.
4. The transaction is expected to close in Q4, pending regulatory approvals and closing conditions.

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