A consortium of KKR and Singtel inked an agreement to invest SGD1.75 billion ($1.3 billion) in ST Telemedia Global Data Centres (STT GDC) to support its international expansion and growth plans. 

In addition to the initial funding via redeemable preference shares (RPS), with detachable warrants, the transaction includes an additional SGS1.2 billion investment by the consortium after exercising the warrants.

The size of the stake was not disclosed.

Singtel Interactive will subscribe to SGD400 million in RPS. If it exercises all of its warrants, the total consideration would reach SGD684 million, Singtel stated in a stock market filing. KKR didn’t release details of its planned investment.

Growth catalyst
STT GDC president and group CEO Bruno Lopez indicated given the current trajectory of cloud and AI-led sectors, the strategic partnership with KKR and Singtel will be a significant catalyst for its “next chapter of growth as a leader” in the digital infrastructure industry.

Singtel group CFO Arthur Lang noted the deal is “a solid opportunity” for it to gain exposure to an established platform with a footprint in high-quality data centre markets and aligns with a strategy to scale its digital infrastructure business.

Following reports of a pending deal, Singtel issued a statement in late May saying no definitive or binding agreement had been made.

STT GDC was set up in 2014 and operates 95 data centres across 11 countries in Asia and Europe.