No longer a ‘boring’ telco: Singtel’s S$13.8 billion data centre bet with KKR to power its transformation

[SINGAPORE] When the market whispers about a multi-billion dollar deal, people usually listen. But when Singtel and private equity giant KKR are the ones doing the talking – and the target is ST Telemedia Global Data Centres (STT GDC) – the market doesn’t just listen; it rallies.

Singtel shares climbed 1.1 per cent on Monday (Feb 2) on reports over the weekend that a KKR-Singtel consortium was nearing a deal. Sovereign wealth funds GIC from Singapore and Mubadala from Abu Dhabi were also said to be in talks to join as minority co-investors.

As anticipation built, shares of the Singapore-listed telecom company soared another 4.7 per cent on Tuesday to close at S$4.86. It opened at S$4.95 on Wednesday after the deal was announced earlier in the morning.