Private equity firm KKR has agreed to buy a 20% stake in Singapore Telecommunications’ regional data center business for 1.1 billion Singapore dollars (US$800.0 million).
The telecom company said on Monday that the investment to be made by a KKR-managed fund takes the enterprise value of Singtel’s total regional data center business to S$5.5 billion.
Singtel Z74,
said that KKR KKR,
could increase its stake to 25% by 2027 at a pre-agreed valuation.
Singtel will use the proceeds from the sale to expand its regional data center business into Asean markets including Singapore, Indonesia and Thailand, while exploring markets such as Malaysia and others.
“This will broaden the company’s strategic choices, creating a variety of monetization opportunities in the future,” Singtel said.
The transaction is expected to close in the fourth quarter of this year, subject to regulatory approval.
“With more than S$6 billion released since we embarked on our strategic reset two years ago, we remain focused on unlocking value for our shareholders,” said Singtel Chief Financial Officer Arthur Lang.
KKR is making this investment as part of its infrastructure strategy for Asia.
Some of his previous investments include Pinnacle Towers, a digital infrastructure platform in Asia with a strong focus on the Philippines; First Gen, a clean and renewable energy provider in the Philippines; and Aster Renewable Energy, a platform that develops, builds and operates solar, wind and energy storage projects in the Asian region.