SingTel - RHB Invest 2024-06-19: Inks JV For Malaysian Data Centre; Keep BUY

• We view SingTel (SGX:Z74)’s latest data centre (DC) foray in Malaysia positively. The JV completes its regional DC footprint, with scale economies to drive longer-term growth for its Digital InfraCo business, which is a key growth engine.

Singtel has entered into a JV with Telekom Malaysia

• - Read this at SGinvestors.io -
• Both have agreed to commit up to MYR1.15bn as initial equity over a period of five years, with Nxera’s commitment being MYR564m. TM will invest the remaining MYR587m. The committed equity funding is subject to change, depending on the approved business plan at any point in time.
• - Read this at SGinvestors.io -
• The exercise is pending TM’s shareholder approval and subject to various regulatory/state approvals, including the variation of the land status, with expected completion in 2H24.

Third data centre partnership; completes SingTel's ASEAN data centre footprint.

• Read more at SGinvestors.io.

Singapore Research RHB Securities Research | https://www.rhbgroup.com/ 2024-06-19 SGinvestors.io

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