KKR-led group nears deal to buy Singapore data centre firm STT GDC: Report
The S$13 billion deal would rank as one of Asia's largest data centre transactions if achieved.
Trading information for KKR & Co is displayed on a screen on the floor of the New York Stock Exchange (NYSE) in New York, US, on Aug 23, 2018. (File photo: Reuters/Brendan McDermid)
A KKR-led consortium is nearing a deal to buy Singapore-based ST Telemedia Global Data Centres that would value it at more than S$13 billion (US$10 billion), the Wall Street Journal reported on Saturday (Jan 31), citing people familiar with the matter.
ST Telemedia, which is wholly owned by Singapore state investor Temasek Holdings, owns about 82 per cent of STT GDC while KKR already owns about 14 per cent and Singapore Telecommunications more than 4 per cent.
KKR is making the acquisition with Singtel, the newspaper said.
Bloomberg News reported on Sunday that sovereign wealth funds GIC from Singapore and Mubadala from Abu Dhabi are in talks to join KKR and Singtel in the purchase as minority co-investors.
Singtel said in a statement that it continues to have talks in relation to STT GDC as part of a consortium, adding that while these discussions are at an advanced stage, there is no certainty they will lead to any definitive or binding agreement.
KKR declined to comment on the WSJ report, while STT GDC, ST Telemedia, GIC and Mubadala did not respond to requests for comment.
Reuters reported in November that KKR and Singapore Telecommunications were in advanced talks to buy more than 80 per cent of STT GDC, which would give them full ownership, for over S$5 billion (US$3.93 billion).
If the current transaction is successful, the deal would rank among Asia's biggest data centre transactions, with the boom in artificial intelligence creating soaring demand for digital infrastructure.
Founded in 2014 and headquartered in Singapore, STT GDC describes itself as one of the world's fastest-growing data centre providers.
It operates more than 100 data centres with over 2 gigawatts of IT load across over 20 major markets, including Singapore, India and Japan, as well as Europe via its VIRTUS brand in the UK, Germany and Italy, according to its website.
