A consortium led by KKR and Singtel will pay S$6.6 billion in cash to acquire full control of ST Telemedia Global Data Centres, valuing the company at S$13.8 billion. This deal marks the largest in Singapore in four years and the largest data center deal in Southeast Asia, reflecting the increasing demand for AI and cloud services.

Shares of Singtel rose 1.9% to a record high of S$4.95 and closed at S$4.91 after the acquisition announcement. STT GDC, founded in 2014, operates in 12 major markets across Asia Pacific, the UK, and Europe. The deal involves KKR and Singtel acquiring an 82% stake from founding shareholder ST Telemedia.

Upon completion, KKR and Singtel will hold 75% and 25% respectively in STT GDC. Analysts view the deal positively, with Singtel solidifying its position as a major data center operator in Asia. The transaction is expected to be completed in the second half of 2026, pending regulatory approvals.

Citi served as the lead financial advisor to the KKR-Singtel consortium for the acquisition, with Bank of America also advising. J.P. Morgan acted as the sole financial advisor to ST Telemedia in the deal. The cash consideration of $5.2 billion will be paid in two equal tranches, with debt facilities of about S$5 billion secured to fund the transaction.

Read more at Yahoo Finance: KKR, Singtel pay $5.2 billion for full control of data centre operator STT GDC