A consortium led by KKR and Singapore Telecommunications will pay $6.6 billion in cash to acquire the remaining 82 per cent stake in ST Telemedia Global Data Centres, valuing the company at an implied enterprise value of S$13.8 billion. The development follows earlier reports in November that KKR and Singtel were in advanced discussions to buy out more than 80 per cent of STT GDC to gain full ownership.
Under the transaction, the KKR-led consortium will purchase the outstanding stake from founding shareholder ST Telemedia through STT Communications Limited, an indirect wholly owned subsidiary of Temasek Holdings.
Once the deal is completed, KKR and Singtel will hold 75 per cent and 25 per cent of STT GDC respectively, after factoring in the conversion of existing redeemable preference shares held by both investors.
The cash payment will be made in two equal instalments, with half payable at closing and the remainder around a year later. The consortium has secured around S$5 billion in debt facilities to fund the acquisition, future capital expenditure and other corporate needs.
Singtel said it will inject S$740 million in equity into the acquisition vehicle, with the investment to be funded from internal cash resources. The company added that the transaction is not expected to materially affect its credit rating or dividend policy.
The deal is targeted to close in the early part of the second half of 2026, subject to regulatory approvals and other customary conditions.
Citigroup acted as lead financial adviser to the KKR-Singtel consortium and also provided acquisition financing for the transaction.
