Singapore, Feb 2, 2026, 14:59 SGT — Regular session
- Shares rose roughly 0.9% in afternoon trading, fueled by rumors of a big data-centre acquisition
- Company describes talks as “advanced” but stops short of confirming a binding deal
- Investors are focused on the deal terms, funding specifics, and when the next earnings report will drop
Shares of Singapore Telecommunications Limited (SGX:Z74) rose 0.9% to S$4.63 by 2:48 pm, following a weekend report that sparked renewed speculation the telecom giant might ramp up investments in data centres. (SG Investors)
This shift is crucial as investors wrestle with Singtel’s future beyond its role as a mature telecom provider. Data centres—facilities housing servers for cloud and AI computing—are emerging as the growth engine that could still boost a large telco’s valuation.
The story cuts both ways. When price and funding feel heavy, the market can shift quickly—especially if deal headlines outpace the actual signed terms.
The Wall Street Journal said a consortium led by KKR is close to sealing a deal to acquire ST Telemedia Global Data Centres, valuing the firm at over S$13 billion (roughly $10 billion). Currently, Temasek Holdings owns about 82% of ST Telemedia, with KKR holding around 14% and Singtel just over 4%. (Reuters)
In a filing to the Singapore Exchange late Sunday, Singtel said talks were at an “advanced stage” but cautioned there was “no certainty” they’d produce a definitive or binding deal. The company urged investors to approach media reports carefully and promised to provide updates if any material developments occur. (Singtel Digital)
Bloomberg News reported that GIC and Mubadala Investment Company are in discussions to come on board as minority co-investors. Representatives from both firms declined to comment, according to the report. (Business Standard)
Broker RHB Bank Singapore maintained its buy rating, calling the potential acquisition “highly synergistic.” The deal could boost Singtel into a larger data-centre platform with a global footprint, the bank said. It also noted these transactions are often structured as leveraged buyouts—takeovers mostly financed by debt—and drew a parallel with Blackstone’s A$24 billion AirTrunk purchase in 2024. (The Edge Singapore)
On Monday, Singtel unveiled a new five-year technology deal with the Home Team Science and Technology Agency, targeting AI, secure communications, and cybersecurity for public safety. Ng Tian Chong highlighted that the partnership will provide officers with “stronger tools” and “greater operational agility.” Bill Chang, head of Singtel Digital InfraCo, emphasized that “trusted and sovereign” technology is “critical” for public security applications. Chan Tsan added the collaboration aligns with plans to develop an “AI-enabled” Home Team. (The Edge Singapore)
Still, the immediate risk is straightforward: talks might stall, prices could fluctuate, and rival bidders may emerge. Even if the strategic logic seems clear, a binding deal would subject funding and returns to intense scrutiny.
Traders are shifting focus to tangible progress — such as a disclosed term sheet, financing plan, or a formal agreement — instead of more weekend rumors. Singtel’s next earnings report, scheduled for Feb 18, may serve as the next key moment for management to update on capital allocation and deal appetite. (Investing)
