Singtel jumps 5.1% to all-time high on talks to buy local data-centre firm
The telco and KKR & Co are in the late stages of discussions to buy more than 80% of ST Telemedia Global Data Centres for over S$5 billion
[SINGAPORE] Shares of Singtel rose 5.1 per cent on Thursday (Nov 6), climbing to an all-time high of S$4.49 at 3.46 pm, S$0.23 above the previous day’s close of S$4.27.
The counter hit the high amid heavy trading — by 4.05 pm, nearly 38.7 million shares exchanged hands.
This rides on the back of the news that Singtel and KKR & Co are in advanced talks to buy more than 80 per cent of ST Telemedia Global Data Centres – which would give them full ownership – for over US$3.9 billion (S$5 billion), two people with direct knowledge of the plans said.
KKR currently owns about 14 per cent of the firm, and Singtel, more than 4 per cent. The rest of the company is held by ST Telemedia, which is wholly owned by Singapore investment company, Temasek.
If successful, the deal would rank among Asia’s biggest data-centre transactions, with the boom in artificial intelligence creating soaring demand for digital infrastructure.
The counter surpassed the previous high of S$4.41 recorded in mid-September this year, which was supported by the news of Singtel’s data centre arm, Nxera, developing a new generation of more sustainable, artificial intelligence (AI)-ready data centres to support the advancement of AI in Singapore and the region.
