Private-equity firm KKR has announced its plans to purchase a 20% stake in Singapore Telecommunications’ regional data center business for 1.1 billion Singapore dollars (US$800.0 million). This strategic investment, managed by a KKR fund, values Singtel’s overall regional data center business at S$5.5 billion.
Singtel revealed that KKR has the opportunity to increase its stake to 25% by 2027, based on a pre-agreed valuation. The proceeds from the sale will be utilized by Singtel to expand its regional data center operations, particularly in Asean markets such as Singapore, Indonesia, and Thailand. The company also expressed its interest in exploring future opportunities in countries like Malaysia.
Singtel believes that this deal will provide the business with a wider range of strategic options and potential monetization opportunities in the future.
Subject to regulatory approvals, the transaction is expected to be finalized by the fourth quarter of this year.
According to Singtel’s Chief Financial Officer Arthur Lang, this investment aligns with KKR’s Asia infrastructure strategy. Previous investments made by KKR in the region include Pinnacle Towers, a digital infrastructure platform with a focus on the Philippines, First Gen, a provider of clean and renewable power in the Philippines, and Aster Renewable Energy, a platform specializing in solar, wind, and energy storage projects across Asia.
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