KKR and Singtel to fully acquire STT GDC for $5.1bn

Core Viewpoint - A consortium led by KKR and Singtel is acquiring the remaining 82% stake in ST Telemedia Global Data Centres (STT GDC) for S$6.6 billion ($5.1 billion), valuing the company at an enterprise value of approximately S$13.8 billion ($10.9 billion) [1][2] Group 1: Acquisition Details - The acquisition will result in KKR holding a 75% stake and Singtel owning 25% of STT GDC, following the conversion of existing redeemable preference shares [2] - The transaction follows an initial investment in 2024, where KKR and Singtel contributed S$1.75 billion through preference shares and warrants, marking Southeast Asia's largest digital infrastructure investment at that time [2] Group 2: Strategic Implications - KKR's co-head David Luboff emphasized the opportunity to support a high-quality platform and deepen the strategic partnership with Singtel, aiming to leverage KKR's global network and expertise in digital infrastructure for STT GDC's growth [3] - Singtel's CFO Arthur Lang stated that the acquisition is a significant step towards scaling their digital infrastructure growth engine as outlined in the Singtel28 growth plan, while maintaining capital allocation discipline [4] Group 3: Company Operations and Market Position - STT GDC, founded in 2014 and headquartered in Singapore, operates in 12 major markets across Asia Pacific, the UK, and Europe, with a total design capacity of 2.3GW [4] - The company provides colocation, connectivity, and support services for clients managing AI and cloud workloads that require substantial data processing resources [5] - STT GDC's president and CEO Bruno Lopez noted that the expanded investment from KKR and Singtel reflects confidence in the company's business quality and growth trajectory, aiming to enhance infrastructure for the digital economy [5] Group 4: Future Growth Potential - The consortium's combined expertise, regional networks, and financial strength position STT GDC to scale rapidly and capture significant growth in cloud and AI demand [6] - The completion of the acquisition is subject to regulatory approvals and standard closing conditions [6]