Singapore, Feb 6, 2026, 15:00 SGT — Regular session
- In afternoon trading, Singtel slipped to S$4.76, shedding roughly 0.4% compared to its last close
- Investors continue to parse the details of the STT GDC take-private deal and its financing
- Broker notes have grown more upbeat, shifting attention toward earnings due February 18
Singapore Telecommunications Ltd shares dipped on Friday, continuing to retreat from earlier gains sparked by its data-centre deal with KKR. By 3 p.m. Singapore time, the stock was trading around S$4.76, down roughly 0.4%, having fluctuated between S$4.66 and S$4.77 during the session. (Google)
The selling came after a volatile Thursday session, where Singtel dropped as much as 3.9% before closing down 2.6% at S$4.78. This erased gains from a two-day rally sparked by the STT GDC announcement. The dip briefly halted the Straits Times Index’s climb as it neared the 5,000-point level. (The Business Times)
The slide is significant because Singtel wants investors to see it beyond just a “telco” and value it as a major digital infrastructure player, all while maintaining its dividend payouts. An exchange filing revealed the consortium will shell out S$6.6 billion in cash for the STT GDC stake on offer, paid in two tranches and pending regulatory approval. Singtel’s committed cash portion stands at S$740 million. (SGX Links)
In its deal presentation, Singtel valued STT GDC’s implied enterprise value at S$13.8 billion, a figure that factors in debt. The consortium has arranged S$5 billion in debt facilities to cover the purchase and future capital expenditures. Singtel and KKR will own 25% and 75% respectively, with Singtel planning to equity-account STT GDC rather than consolidate it—an approach aimed at safeguarding its balance sheet and dividend strategy. (SGX Links)
Friday’s session unfolded against a softer tone. Singapore shares slipped 0.7% as investors scaled back on Asian tech stocks. Reuters noted this pullback seemed more like de-risking after a solid rally, not a widespread breakdown in the sector. (Reuters)
Broker notes remain upbeat on Singtel despite the share price dipping. CGS International bumped its target price to S$5.34, while HSBC nudged theirs up to S$5.20—both keeping “buy” ratings. CGS analyst Prem Jearajasingam highlighted the deal’s “long-term growth opportunities,” and DBS’s Sachin Mittal called it a “long-term growth driver at a small cost.” On the other hand, Morningstar’s Dan Baker sounded a note of caution, saying the acquisition could be “mildly EPS (earnings per share) dilutive” for a few years. (The Business Times)
The timeline remains lengthy, with the market still uncertain about execution risks. Data centres demand heavy capital and can drag down short-term profits if new space doesn’t fill quickly, leaving the stock vulnerable to higher rates or downgraded growth forecasts.
Investors are waiting for more clarity on funding and regulatory approvals, with Singtel’s next earnings report due Feb. 18. It will offer the first detailed insight into how management plans to handle the deal and immediate cash requirements. (Tipranks)
