By Yantoultra Ngui
SINGAPORE (Reuters) -A consortium of U.S. funding agency KKR and Singapore Telecommunications (SingTel) has emerged because the frontrunner to purchase a minority stake value $1 billion in one among Asia’s greatest knowledge centre suppliers, two sources stated.
The potential funding in STT Telemedia International Information Centres (STT GDC) displays rising curiosity and demand for knowledge centres throughout Asia Pacific as nations and firms reply to the increase in synthetic intelligence.
The KKR-SingTel consortium is competing with New York-headquartered various funding agency Stonepeak for the stake of up to twenty%, one of many sources stated.
A deal might be sealed or introduced in early June, the primary supply added.
The sources declined to be recognized as the knowledge just isn’t but public.
KKR declined to remark.
SingTel, in an area inventory trade submitting on Wednesday, stated it usually explores and critiques enterprise alternatives, initiatives and proposals referring to its enterprise and enters into discussions with numerous events sometimes.
“When such discussions occur, there is no certainty that any transaction will arise from these discussions or that any definitive or binding agreement will be entered into pursuant to these discussions, and SingTel confirms that there is no definitive or binding agreement at this time,” it added.
STT and Stonepeak didn’t reply to requests for remark.
New York-based KKR purchased a 20% stake in SingTel’s regional knowledge centre enterprise final yr for S$1.1 billion ($816 million).
In February KKR introduced it had raised $6.4 billion for a fund centered on Asia-Pacific infrastructure and energy-related belongings.
Based in 2014, STT GDC is likely one of the quickest rising knowledge centre suppliers with operations in Singapore, the UK, Germany, India, Thailand, South Korea, Indonesia, Japan, the Philippines, Malaysia and Vietnam, in line with its web site.
ST Telemedia, father or mother of STT GDC, is a Singapore-headquartered strategic investor specialising in belongings together with communications and knowledge centres, in line with its web site.
ST Telemedia is wholly owned by Singapore state funding agency Temasek Holdings.