Singtel confirms talks over Singapore data centre firm, shares soar another 4.7%
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Singtel confirmed that it is having ongoing discussions in relation to ST Telemedia Global Centres.
PHOTO: ST FILE
SINGAPORE - Singtel confirmed that it is in talks over ST Telemedia Global Data Centres (STT DGC), following media reports that the telco and private equity firm KKR are in advanced discussions to acquire about 80 per cent of the data centre operator.
“Singtel, as part of a consortium, is having ongoing discussions in relation to STT GDC,” the telco said in a filing with the Singapore Exchange on Nov 7, before the stock market opened.
“There is no certainty that such discussions will lead to any definitive or binding agreement,” Singtel said, adding that it regularly explores and reviews business opportunities, projects and proposals.
Singtel said it will make an announcement if and when there are any material developments that warrant disclosure, and that investors should exercise caution in their review of any media reports relating to potential transactions ahead of any definitive announcement.
Singtel shares jumped to a new high of $4.73 as at 9.11am on Nov 7, before paring some gains to close at $4.63. More than 61 million shares changed hands.
As for STT GDC, the company was founded in 2014 and headquartered in Singapore. It describes itself as one of the world’s fastest-growing data centre providers.
KKR and Singtel first invested $1.75 billion in the data centre firm in June 2024. KKR currently owns about 14 per cent of the firm while Singtel has a stake of more than 4 per cent. The rest of the company is held by ST Telemedia, which is wholly owned by Singapore investment company Temasek.
According to Reuters, if successful, the deal would be among the biggest data centre transactions in Asia, driven by surging demand for digital infrastructure amid the artificial intelligence boom.
KKR declined to comment in response to queries from The Straits Times.
In other Singtel news, its unit Pastel on Nov 7 sold a 0.8 per cent stake, or 51 million shares, in Indian mobile carrier Bharti Airtel in a deal that fetched 103.5 billion rupees (S$1.5 billion).
Singtel now holds a 27.5 per cent stake in Bharti Airtel, down from 31.4 per cent in 2022.
