A KKR-led consortium is nearing a deal to buy ST Telemedia Global Data Centres (STT GDC), which would value the company at more than $13 billion, the Wall Street Journal reported on Saturday (Jan 31), citing people familiar with the matter.
The investment firm will acquire the Singapore-based global data centre provider from its parent company, the report said, adding that KKR is making the acquisition together with Singaporean telecommunications giant Singtel.
Reuters could not immediately verify the report. KKR declined to comment on the report, while ST Telemedia Global Data Centres, and ST Telemedia did not immediately respond to Reuters' request for comment outside regular business hours.
In a clarification filed with the Singapore stock exchange on Sunday (Feb 1), Singtel confirmed that it is part of a consortium in relation to discussions on STT GDC, adding that "there is no certainty" that such discussions will lead to any definitive or binding agreement.
"Singtel regularly explores and reviews business opportunities, projects and proposals relating to its business and investments. Singtel, as part of a consortium, continues to have discussions in relation to STT GDC. While this discussions are at an advanced stage, there is no certainty that such discussions will lead to any definitive or binding agreement," it said.
Singtel also said that it will make an announcement if and when there are any material developments that warrant disclosure in line with its obligations as a listed company.
Reuters reported in November that KKR and Singapore Telecommunications were in advanced talks to buy more than 80 per cent of ST Telemedia Global Data Centres, which would give them full ownership, for over $5 billion.
KKR currently owns about 14 per cent of the firm while Singtel, the city-state's biggest telecom operator, has a stake of more than four per cent. The rest is held by ST Telemedia, which is wholly owned by Singapore state investor Temasek Holdings.
If 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, ST Telemedia Global Data Centres describes itself as one of the world's fastest-growing data centre providers.
It operates more than 100 data centres with over two 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.
Additional reporting by AsiaOne
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