KKR, Singtel in $5.2B Deal for STT GDC Control

Deal Overview

A consortium led by KKR and Singapore Telecommunications will pay S$6.6 billion, equivalent to $5.2 billion, for the remaining 82% stake in ST Telemedia Global Data Centres. This transaction places an implied enterprise value of S$13.8 billion on the data centre operator.

Market Context

This acquisition represents the largest M&A deal in Singapore in the past four years and is Southeast Asia’s biggest data centre transaction ever. The move comes amid surging demand for AI computing and cloud services, fueling an intense race for data centre capacity and scale across the Asia Pacific region.

Transaction Details and Impact

Following the deal's completion, KKR will hold a 75% stake, while Singtel will own 25%. The cash payment will be divided into two equal tranches. Singtel confirmed its S$740 million commitment will be funded internally and anticipates no material impact on its credit rating or dividend policy. The transaction is expected to close by the second half of 2026, pending regulatory approvals.

Conclusion

This strategic move positions KKR and Singtel to capitalize on the rapidly expanding digital infrastructure market. For the seller, ST Telemedia, a subsidiary of Temasek, it marks a successful transition of ownership to partners equipped to accelerate STT GDC’s next growth phase.

FAQ

Q: What is the total value of the STT GDC acquisition?
A: The cash payment is S$6.6 billion ($5.2 billion), with an implied enterprise value of S$13.8 billion for STT GDC.

Q: Who are the main parties involved in this deal?
A: The acquiring consortium is KKR and Singtel. They are purchasing the stake from ST Telemedia, which is an indirect wholly owned subsidiary of Temasek Holdings.

Source: Investing.com