Singtel announced that it will be acquiring a 25% stake in ST Telemedia Global Data Centres (STT- GDC) via a consortium with global investment firm, KKR. The consortium will be required to pay a total consideration of S$6.6b (payable in two tranches), to acquire the remaining 82% stake in STT-GDC, slated for completion by early-2H26.
- Read this at SGinvestors.io -
Initial cash contribution of S$740m to be followed by S$400m-500m capex commitment.
Singtel will commit an initial capital outlay of S$740m, payable in two tranches, to complete the acquisition of its 25% stake in STT- GDC. The group is expected to inject a further S$400m-500m in equity over the next 2-3 years as STT-GDC expands its operational capacity to 1.7GW from the existing 673MW.
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Implied EV/EBITDA multiple around the high teens.
The implied enterprise value of S$13.8b translates into an EV/EBITDA multiple in the high teens, based on management’s guidance. This valuation is derived from the forward contracted EBITDA run rate, expected to be realised by the fourth year following the acquisition, as the consortium aims to double STT-GDC’s EBITDA in line with its long-term capacity expansion plans.
Favourable long-term prospects.
Read more at SGinvestors.io.
Above is an excerpt from a report by UOB Kay Hian Research. Clients of UOB Kay Hian may be the first to access the full PDF report @ https://www.utrade.com.sg/.
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