Global investment firm KKR is to acquire a 20% stake in SingTel Telecommunications (SingTel) regional data centre business for SGD1.1bn ($806.87m) giving the firm’s overall data centre business an enterprise value of SGD5.5bn ($4.03bn), according to a report by Reuters.
In a joint statement, SingTel and KKR said the funds will be used to expand the business across Southeast Asian markets, including Singapore, Indonesia and Thailand.
The collaboration is a first between Singtel and KKR, and enables Singtel to tap into KKR’s expertise investing in data centres and critical telecommunication infrastructure globally, in addition to capital.
Singtel’s regional data centre business is part of the Digital InfraCo unit which was formed in June 2023.
KKR is making this investment as part of its Asia infrastructure strategy. Previous infrastructure investments in Southeast Asia include Pinnacle Towers, a digital infrastructure platform in Asia with a strong focus on the Philippines; First Gen, a leading provider of clean and renewable power in the Philippines; and Aster Renewable Energy, a renewables platform that develops, builds, and operates solar, wind, and energy storage projects in the region.
The transaction is expected to be completed by the fourth quarter of 2023, subject to regulatory approvals and customary closing conditions.