World funding agency KKR is main a consortium with Singtel to take a position US$1.3 billion (roughly S$1.75 billion) in ST Telemedia World Information Centres (STT GDC).
The transaction is reportedly the most important digital infrastructure funding in Southeast Asia up to now in 2024.
In line with the settlement, the preliminary US$1.3 billion funding by the consortium is made up of redeemable choice shares (RPS), with removable warrants. Upon train of the warrants in full, the consortium will make investments an extra US$920 million (roughly S$1.24 billion).
KKR revealed it’s investing from its Asia Pacific Infrastructure Buyers II Fund, and is the agency’s newest digital infrastructure funding in Southeast Asia and globally. It follows an earlier announcement on the Indo-Pacific Partnership for Prosperity to mobilise infrastructure within the Indo-Pacific area.
Previous investments by KKR in Southeast Asian digital infrastructure embody Nxera, Pinnacle Towers and OMS Group.
In September final yr, KKR acquired a 20 per cent stake in Nxera, Singtel’s regional knowledge centre enterprise.
David Luboff, co-head of KKR’s Asia Pacific operations and head of infrastructure for the area, emphasised that knowledge centres function an “vital spine” of the digital infrastructure that allows a rising digital financial system and lots of vital industries globally.
“Our funding in STT GDC is a uncommon alternative to help the expansion of a number one knowledge centre platform with a terrific monitor report of development and vital potential, while deepening our current collaboration with Singtel,” he added.
“Collectively, we sit 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 to attain its subsequent part of transformation.”
Equally, Singtel group monetary officer Arthur Lang commented that the telco sees digital infrastructure, notably knowledge centres, as a “development asset” and “compelling funding”, attributing the rise of the sector to speedy digitalisation and synthetic intelligence (AI) adoption globally.
“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 knowledge centre arm Nxera final September,” he said.
“It is a stable alternative for Singtel to achieve publicity to a longtime platform with a footprint in high-quality knowledge centre markets and aligns with our Singtel28 technique to additional scale our digital infrastructure enterprise in collaboration with like-minded companions.”
It was additionally disclosed that the consortium was chosen following an “unbiased aggressive course of” by STT GDC and its father or mother firm, ST Telemedia (STT). Issues included the consortium’s collective experience and monitor report, monetary power, and proposed enterprise technique.
The proceeds of the funding will likely be used to advance STT GDC’s place within the markets it operates in, and to help its persevering with worldwide enlargement and development plans by natural and inorganic methods. Following the transaction, STT continues to be the bulk shareholder of STT GDC.
“We’re thrilled to welcome KKR and Singtel, two blue-chip buyers within the digital infrastructure house into the STT GDC group,” stated Bruno Lopez, president and group CEO of STT GDC.
“Since our inception ten years in the past, STT GDC has developed into a number one knowledge centre supplier with a big footprint in Asia, the UK and Europe, supporting the expansion of the world’s largest cloud and enterprise prospects.”
Lopez additionally defined that the business is present process “unprecedented cloud and AI-led development” and the partnership with the consortium would act as a “vital catalyst” for STT GDC’s subsequent part of enlargement within the digital infrastructure business.
In the meantime, president and group CEO of STT Stephen Miller celebrated the partnership and affirmed that the corporate has “steadfastly supported” STT GDC’s evolution and development since its inception.
“Right this moment’s announcement marks one other vital milestone for STT GDC with the introduction of two new marquee buyers to boost its world development methods,” he added.
“As a strategic investor and shareholder, STT appears ahead to working intently with our new companions to propel STT GDC in its thrilling subsequent part of worldwide development.”
