KKR-led group nears deal to buy Singapore data center firm STT GDC, WSJ reports
Jan 31 (Reuters) – 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 ($10 billion), the Wall Street Journal reported on Saturday, citing people familiar with the matter.
ST Telemedia, which is wholly owned by Singapore state investor Temasek Holdings, owns about 82% of STT GDC while KKR already owns about 14% and Singapore Telecommunications (STEL.SI), more than 4%.
KKR (KKR.N), 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 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% of STT GDC, which would give them full ownership, for over S$5 billion ($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.
($1 = 1.2721 Singapore dollars)
Reporting by Akanksha Khushi, Disha Mishra and Devika Nair in Bengaluru; Additional Reporting by Mihika Sharma in Bengaluru; Editing by Shri Navaratnam, Sonali Paul, Alexander Smith and Cynthia Osterman
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KKR-led group nears deal to buy Singapore data center firm STT GDC, WSJ reports, source
