A consortium led by KKR including Singtel, a communications technology group based in Singapore, has contributed S$1.75 billion ($1.3 billion) to ST Telemedia Global Data Centers (STT GDC), a Singapore-based provider of data center colocation services.
In a statement, STT GDC said that it, KKR, a renowned international investment firm, and Singtel had inked formal contracts whereby Singtel (the consortium) and a group led by KKR would invest in STT GDC.
In 2024, this deal will represent the biggest investment in digital infrastructure in Southeast Asia to date.
The consortium invested S$1.75 billion ($1.3 billion) in redeemable preference shares (RPS) with detachable warrants as part of the transaction.
The consortium will invest an additional S$1.24 billion ($920 million) upon full exercise of the warrants.
STT and STT GDC conducted an independent competitive process that resulted in the consortium’s selection. The process took into account various factors, including the consortium’s financial stability, business plan, and overall experience and performance.
Through both organic and inorganic strategies, the investment’s proceeds will be used to strengthen STT GDC’s position in the markets it serves and to support the company’s ongoing plans for growth and international expansion.
ST Telemedia is still the company that owns the majority of STT GDC after the transaction.
“Since our inception 10 years ago, STT GDC has developed into a leading data center provider with a significant footprint in Asia, United Kingdom and Europe, supporting the growth of the world’s largest cloud and enterprise customers,
“With the industry experiencing unprecedented cloud and artificial intelligence (AI)-led growth, this strategic partnership with KKR and Singtel will be a significant catalyst for STT GDC’s next chapter of growth as a leader in the digital infrastructure industry,” said Bruno Lopez, President & Group CEO of STT GDC.
The founder of ST Telemedia, Stephen Miller, also serves as group chief executive officer and president. He stated that the company has consistently backed the development and expansion of STT GDC since its founding.
