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KKR buys 20% of Singapore telco Singtel’s data centre business for S$1.1 billion

KKR
By Hui Ching-hoo   
September 19, 2023

US alternative asset manager KKR & Co. Inc is buying 20% of Singapore Telecommunications’ data centre business for S$1.1 billion (US$800 million), with the option to increase its stake to 25% by 2027.

The investment values Singtel’s regional data centre business at S$5.5 billion, the companies say in a joint statement on September 18.

Singtel says the proceeds of the sale will be used to accelerate expansion of the regional data centre business across the Association of Southeast Asian Nations bloc of countries.

According to the company, collaborating with KKR allows it to tap on the US firm’s expertise investing in data centres and critical telecommunication infrastructure globally.

“The investment by KKR crystalises the latent value of our data centre assets and we hope this illuminates value for our shareholders in the coming months,” Singtel Group Chief Financial Officer Arthur Lang says in the statement.

The deal is expected to be completed by the fourth quarter, subject to regulatory approvals.

New York-based KKR had $504 billion of assets under management as of December 2022.