ST Telemedia International Information Centres (STT GDC), KKR, and Singtel have collectively introduced the signing of definitive agreements for a serious funding in STT GDC. The transaction, led by KKR and involving an funding consortium that features Singtel, will see an funding of SGD $1.75 billion (roughly USD $1.3 billion) in STT GDC, marking the most important digital infrastructure funding in Southeast Asia in 2024.
The funding will likely be made by Redeemable Choice Shares (RPS) with removable warrants. If the warrants are totally exercised, the consortium might probably make investments a further SGD $1.24 billion (roughly USD $920 million). STT and STT GDC chosen the consortium following an unbiased aggressive course of, which evaluated components similar to experience, monetary energy, and strategic imaginative and prescient.
Bruno Lopez, President and Group CEO of STT GDC, expressed enthusiasm for the brand new partnership. “We’re thrilled to welcome KKR and Singtel, two blue-chip traders within the digital infrastructure area, into the STT GDC group. Since our inception 10 years in the past, STT GDC has developed into a number one information centre supplier with a big footprint in Asia, UK, and Europe, supporting the expansion of the world’s largest cloud and enterprise clients. With the trade experiencing unprecedented cloud and AI-led progress, this strategic partnership with KKR and Singtel will likely be a big catalyst for STT GDC’s subsequent chapter of progress as a frontrunner within the digital infrastructure trade,” Lopez stated.
David Luboff, Co-Head of KKR Asia Pacific and Head of Asia Pacific Infrastructure, additionally emphasised the importance of the funding. “Information centres function an necessary spine of the digital infrastructure that permits an more and more digital economic system and lots of important industries globally. Our funding in STT GDC is a uncommon alternative to help the expansion of a number one information centre platform with a terrific observe file of progress and important potential, while deepening our current collaboration with Singtel. Collectively, we stay up for leveraging our world community and experience investing in digital infrastructure to energy STT GDC’s continued success and worldwide enlargement, and to assist it obtain its subsequent part of transformation,” Luboff said.
Arthur Lang, Group Chief Monetary Officer of Singtel, remarked on this collaboration’s strategic and monetary advantages. “We see digital infrastructure, significantly information centres, as a progress asset and compelling funding with the outstanding rise of the sector pushed by speedy digitalisation and AI adoption world wide. Given our joint experience in digital infrastructure, we’re happy to take part on this fundraising with KKR, deepening our relationship since its funding in our regional information centre arm Nxera final September. This can be a strong alternative for Singtel to realize publicity to a longtime platform with a footprint in high-quality information centre markets and aligns with our Singtel28 technique to additional scale our digital infrastructure enterprise in collaboration with like-minded companions,” Lang stated.
Stephen Miller, President and Group CEO of ST Telemedia, highlighted the expansion alternatives for STT GDC. “Since founding STT GDC, we’ve steadfastly supported its evolution and progress. Immediately’s announcement marks one other necessary milestone for STT GDC with the introduction of two new marquee traders to reinforce its world progress methods. As a strategic investor and shareholder, STT appears to be like ahead to working intently with our new companions to propel STT GDC in its thrilling subsequent part of world progress,” Miller stated.
KKR is making this funding by its Asia Pacific Infrastructure Buyers II Fund, aligning with its broader technique to fortify digital infrastructure within the Indo-Pacific area. Previous initiatives in Southeast Asian digital infrastructure embody Nxera, Pinnacle Towers, and OMS Group.
The transaction is topic to ordinary situations precedent, together with regulatory approvals. Following the transaction, ST Telemedia will stay the bulk shareholder of STT GDC. Singtel continues to play a pivotal position within the connectivity and digital providers area, with information centres being a important element of its enterprise technique.
