KKR to acquire 20% stake in Singtel’s regional data center business

Singtel, Asia’s leading communications technology group, and KKR have reached a definitive agreement under which a fund managed by KKR will commit up to S$1.1B, or $800M, for a 20% stake in Singtel’s regional data center business. This investment puts the enterprise value of Singtel’s overall regional data center business at S$5.5B. KKR will have the option to increase its stake to 25% by 2027 at the pre-agreed valuation. The collaboration is a first between Singtel and KKR, and enables Singtel to tap on KKR’s expertise investing in data centers and critical telecommunication infrastructure globally in addition to capital. The proceeds from this transaction will be used to accelerate the expansion of the regional data center business across ASEAN markets, including Singapore, Indonesia and Thailand, while exploring markets like Malaysia and others. This will widen the business’ strategic choices, giving a variety of options to monetize in the future. The transaction is expected to be completed by the fourth quarter of 2023, subject to regulatory approvals and customary closing conditions.