Singtel (SGX:Z74) and KKR will acquire the remaining 81.7% stake in ST Telemedia Global Data Centres (GDC) for S$6.6bn in cash. Singtel and KKR will own 25% and 75% of GDC, respectively. GDC operates 50 data centres in 12 countries with a power capacity of 673MW.
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Details of the transaction:
Acquisition target: 81.7% stake of STT GDC Pte. Ltd.
Seller: STT Communications Ltd
Purchaser: KKR Opal Fund (75%) and Singtel (25%)
Consideration: S$6.6bn in cash in 2 tranches – closing of sales agreement (50%) and change in control/1st anniversary of closing (50%). Singtel may inject S$400-500mil in equity to fund growth over the next three years.
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Valuations: EV/EBITDA: Est. >34x on S$346mil historical EBITDA and high teens on committed EBITDA; P/BV: 1.5x on FY24 financials
GDC's Financials (FY ended Dec 2024): Net loss S$185mil / Book value S$5.3bn / NTA S$4.7bn
Financial impact to Singtel(proforma): FY25 PATMI declines 0.7% from S$4.01bn to S$3.98bn.
The Positives
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Above is an excerpt from a report by Phillip Securities Research. Clients of Phillip Capital may be the first to access the full PDF report @ https://www.stocksbnb.com/.
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