Prime Highlights
- KKR and Singtel have agreed to acquire the remaining 82% stake in ST Telemedia Global Data Centres, underscoring strong investor confidence in digital infrastructure.
- The deal reflects rising demand for data centres driven by rapid growth in artificial intelligence and cloud computing.
Key Facts
- The transaction values STT GDC at an enterprise value of S$13.8 billion, with KKR set to own 75% and Singtel 25% after completion.
- The acquisition is the largest merger and acquisition deal in Singapore in the past four years, according to bank data.
Background
Private equity firm KKR and Singapore Telecommunications (Singtel) have agreed to acquire the remaining 82% stake in ST Telemedia Global Data Centres (STT GDC) for S$6.6 billion, or about $5.1 billion. KKR announced the deal on Wednesday.
The transaction values STT GDC at an enterprise value of S$13.8 billion. The deal comes at a time when demand for data centres is rising sharply due to the rapid growth of artificial intelligence and cloud computing. After the deal is completed, KKR will own a 75% stake in STT GDC, while Singtel will hold the remaining 25%, after converting existing preference shares.
KKR said this marks its largest infrastructure investment in the Asia Pacific region so far. The firm pointed to strong global demand for digital infrastructure, driven by data-heavy AI workloads and cloud services.
Market reaction was positive for Singtel, whose shares rose nearly 2% to a record high before easing. KKR shares, which had fallen sharply a day earlier, edged up in after-hours trading.
Global deal activity in the data centre sector reached a new high last year. According to S&P Global, more than $61 billion flowed into the sector, reflecting the push to build energy-intensive infrastructure for AI applications.
David Luboff, co-head of KKR Asia Pacific, said digital infrastructure remains a strong long-term investment theme. He highlighted STT GDC’s wide geographic presence and strong development pipeline.
Citi acted as the lead financial advisor to both KKR and Singtel. Bank data shows this is the largest merger and acquisition deal in Singapore in the past four years.
Founded in 2014, STT GDC operates data centres across 12 markets in Asia Pacific, the UK, and Europe.
