Transaction marks Southeast Asia’s largest
digital infrastructure investment in 2024
ST Telemedia Global Data Centres (‘STT GDC’ or the ‘Company’), a
leading data centre colocation services provider, KKR, a leading
global investment firm, and Singtel, Asia’s leading communications
technology group, today jointly announced the signing of definitive
agreements under which a KKR-led consortium of KKR (on behalf of
funds managed by it) and Singtel (the ‘Consortium’) will invest
S$1.75 billion (~US$1.3 billion) in STT GDC. This transaction marks
the largest digital infrastructure investment in Southeast Asia to
date in 2024.
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The transaction comprises an initial S$1.75 billion (~US$1.3
billion) investment by the Consortium via Redeemable Preference
Shares (RPS), with detachable warrants. Upon exercise of the
warrants in full, the Consortium will invest an additional S$1.24
billion (~US$920 million).
The Consortium was selected following an independent competitive
process by STT and STT GDC, which considered, among other things,
the Consortium’s collective expertise and track record, financial
strength, and proposed business strategy. The proceeds of the
investment will be used to further advance STT GDC’s position in
the markets it operates in, and to support its continuing
international expansion and growth plans through organic and
inorganic strategies. Following the transaction, ST Telemedia
continues to be the majority shareholder of STT GDC.
Headquartered in Singapore, STT GDC is one of the world’s
fastest-growing data centre providers with more than 95 data
centres across 11 geographies and points of presence in over 20
major business markets. It provides critical services including
high-quality colocation, connectivity, and round-the-clock support
services. Today, its data centre portfolio has a total combined
capacity of more than 1.7GW of IT load.
Bruno Lopez, President & Group CEO of STT GDC, said,
“We are thrilled to welcome KKR and Singtel, two blue-chip
investors in the digital infrastructure space into the STT GDC
group. Since our inception 10 years ago, STT GDC has developed into
a leading data centre provider with a significant footprint in
Asia, UK and Europe, supporting the growth of the world’s largest
cloud and enterprise customers. With the industry experiencing
unprecedented cloud and 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.”
David Luboff, Co-Head of KKR Asia Pacific and Head of Asia
Pacific Infrastructure, KKR, said, “Data centres serve as an
important backbone of the digital infrastructure that enables an
increasingly digital economy and many critical industries globally.
Our investment in STT GDC is a rare opportunity to support the
growth of a leading data centre platform with a terrific track
record of growth and significant potential, whilst deepening our
existing collaboration with Singtel. Together, we look forward to
leveraging our global network and expertise investing in digital
infrastructure to power STT GDC’s continued success and
international expansion, and to help it to achieve its next phase
of transformation.”
Arthur Lang, Group Chief Financial Officer of Singtel,
said, “We see digital infrastructure, particularly data centres, as
a growth asset and compelling investment with the remarkable rise
of the sector driven by rapid digitalisation and AI adoption around
the world. Given our joint expertise in digital infrastructure, we
are pleased to participate in this fundraising with KKR, deepening
our relationship since its investment in our regional data centre
arm Nxera last September. This is a solid opportunity for Singtel
to gain exposure to an established platform with a footprint in
high-quality data centre markets and aligns with our Singtel28
strategy to further scale our digital infrastructure business in
collaboration with like-minded partners.”
Stephen Miller, President & Group CEO of ST
Telemedia, said, “Since founding STT GDC, we have steadfastly
supported its evolution and growth. Today’s announcement marks
another important milestone for STT GDC with the introduction of
two new marquee investors to enhance its global growth strategies.
As a strategic investor and shareholder, STT looks forward to
working closely with our new partners to propel STT GDC in its
exciting next phase of global growth.”
KKR is making this investment from its Asia Pacific
Infrastructure Investors II Fund. This follows KKR’s announcement
at the Indo-Pacific Partnership for Prosperity to mobilize
infrastructure in the Indo-Pacific region, and marks KKR’s latest
digital infrastructure investment in Southeast Asia and globally.
Past investments in Southeast Asian digital infrastructure have
included: Nxera, a Singapore-headquartered data centre platform
serving Asia Pacific; Pinnacle Towers, a digital infrastructure
platform in Asia with a strong focus on the Philippines; and OMS
Group, a leading neutral subsea telecommunications cable services
provider.
Singtel is a leading provider of connectivity, digital services
and digital infrastructure, with data centres a critical part of
the business. In September 2023, KKR acquired a 20% stake in Nxera,
Singtel’s regional data centre business.
The closing of the transaction is subject to the satisfaction of
certain conditions precedent including regulatory approvals.
****
About ST Telemedia Global Data Centres
ST Telemedia Global Data Centres (STT GDC) is one of the
fastest-growing data centre providers with a global platform
serving as a cornerstone of the digital ecosystem that helps the
world to connect. Powering a sustainable digital future, STT GDC
operates across Singapore, the UK, Germany, India, Thailand, South
Korea, Indonesia, Japan, the Philippines, Malaysia and Vietnam,
providing businesses an exceptional foundation that is built for
their growth anywhere. For more information, visit
https://www.sttelemediagdc.com/
About KKR
KKR is a leading global investment firm that offers alternative
asset management as well as capital markets and insurance
solutions. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
world-class people, and supporting growth in its portfolio
companies and communities. KKR sponsors investment funds that
invest in private equity, credit and real assets and has strategic
partners that manage hedge funds. KKR’s insurance subsidiaries
offer retirement, life and reinsurance products under the
management of Global Atlantic Financial Group. References to KKR’s
investments may include the activities of its sponsored funds and
insurance subsidiaries. For additional information about KKR &
Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com.
For additional information about Global Atlantic Financial Group,
please visit Global Atlantic Financial Group’s website at
www.globalatlantic.com.
About Singtel
Singtel is a leading Asian communications technology group,
operating next-generation connectivity, digital infrastructure and
digital businesses including regional data centre arm Nxera and
regional IT services arm NCS. The Group has presence in Asia,
Australia and Africa and reaches over 780 million mobile customers
in 21 countries.
For consumers, Singtel delivers a complete and integrated suite
of services, including mobile, broadband and TV. For enterprises,
Singtel offers a complementary array of workforce mobility
solutions, data hosting, cloud, network infrastructure, analytics
and cyber security capabilities.
Singtel is dedicated to continuous innovation, harnessing
technology to create new and exciting customer experiences, support
enterprises in their digital transformation and shape a more
sustainable, digital future.
For more information, visit www.singtel.com.
About ST Telemedia
ST Telemedia (STT) is a Singapore-headquartered strategic
investor specialising in Communications & Media, Data Centres
and Infrastructure Technology businesses globally. Its vision is to
build leading digital services and infrastructure platforms that
facilitate business growth and help societies advance. Since
commencing operations in 1994, STT has demonstrated a strong track
record of building and growing its portfolio companies into market
leaders in both developed and high-growth markets. Through its
portfolio companies, STT is present in 15 countries across Asia,
Europe and the US. For more information, visit
https://www.sttelemedia.com/
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version on businesswire.com: https://www.businesswire.com/news/home/20240618333507/en/
Media Contacts For ST Telemedia Global Data Centres Chow
Yi +65 9784 6406 yi.chow@sttelemediagdc.com For KKR Asia Pacific
Wei Jun Ong +65 9139 5813 WeiJun.Ong@kkr.com For Singtel Lian Pek
+65 9488 2696 lianpek@singtel.com For ST Telemedia Melinda Tan +65
9852 6757 melinda_tan@sttelemedia.com
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