A major shift is underway in Singapore’s digital infrastructure space as a KKR led consortium and Singapore Telecommunications move to take complete control of STT GDC. The consortium will pay S$6.6 billion or $5.2 billion in cash to acquire the remaining 82% stake from founding shareholder ST Telemedia through STT Communications Ltd, an indirect wholly owned subsidiary of Temasek Holdings.
The deal follows earlier reports by a news agency in November that the two companies were in advanced discussions to raise their ownership beyond 80%. Once completed, KKR and Singtel will hold 75% and 25% respectively, after accounting for the conversion of existing redeemable preference shares. The transaction will be paid in 2 equal tranches, with half due at closing and the balance payable about 1 year later. The buyer has secured debt facilities of around S$5 billion to fund the acquisition, future capital expenditure and other corporate needs.
Singtel said it will invest S$740 million into the acquisition vehicle through an equity injection funded from internal cash resources. The company added that the transaction is not expected to materially affect its credit rating or dividend policy. The acquisition is the largest merger and acquisition deal in Singapore in the past 4 years and the biggest data centre transaction ever in Southeast Asia, driven by rising demand for AI computing and cloud services.
Founded in 2014 and headquartered in Singapore, STT GDC operates data centres with about 2.3 gigawatts of design capacity across 12 major markets in Asia Pacific, the UK and Europe. KKR and Singtel first invested S$1.75 billion in the company in June 2024, holding about 14% and over 4% stakes respectively. “Digital infrastructure remains one of the most compelling long term investment themes globally,” said David Luboff, co head of KKR Asia Pacific and head of Asia Pacific infrastructure at KKR. Temasek described the move as a transition to owners positioned to drive growth, with Ravi Lambah saying, “We welcome the next chapter for STT GDC with KKR and Singtel.” The deal is expected to close by early in the second half of 2026, subject to regulatory approvals, with a financial institution acting as lead advisor and financing provider.
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