KKR to Buy 20% of Singtel’s Datacenter Arm for $800 Million
- It’s making its latest bet on Asian digital infrastructure
- Demand for datacenters and networking surging because of AI
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KKR & Co. agreed to pay S$1.1 billion ($807 million) for a fifth of Singapore Telecommunications Ltd.’s regional datacenter business, making its latest bet on Asian digital infrastructure.
The investment firm will have an option to raise its stake to 25% by 2027, it said in a statement, under a deal that puts the Singtel unit’s enterprise value at about S$5.5 billion. Singapore’s largest telecoms provider will use the capital to bankroll an expansion across Southeast Asia and into new markets such as Malaysia and Vietnam, Chief Financial Officer Arthur Lang said in an interview with Bloomberg TV’s Rishaad Salamat, Yvonne Man and David Ingles. Its shares rose as much as 1.7% early Monday before retreating.