Singapore, Feb 4, 2026, 14:50 SGT — Regular session
- Singtel shares slipped 0.2% to S$4.85 in mid-afternoon trading, following a peak at a record S$4.95 earlier in the session.
- Singtel and KKR agreed to acquire the remaining 82% stake in STT GDC for S$6.6 billion, valuing the company at an enterprise value of S$13.8 billion.
- Investors are focused on funding, regulatory approvals, and how quickly Singtel can expand its data-centre operations without cutting dividends.
Shares of Singapore Telecommunications Ltd (Singtel) slipped 0.2% to S$4.85 by 2:39 pm, after earlier hitting a record high of S$4.95. The rally came on news the company will join KKR in a full takeover of data-centre operator ST Telemedia Global Data Centres (STT GDC). SG Investors
The deal comes as telcos seek growth beyond the crowded mobile and broadband sectors, with data centres becoming a key part of the “AI boom” story amid surging demand for compute and storage capacity. It’s also among Singapore’s largest M&A transactions in recent years, thrusting Singtel’s digital infrastructure play back into the spotlight. Reuters
Shareholders want to know what’s driving the price: how much debt the deal involves and what the capital expenditure will be after everything’s finalized. Singtel said this move shouldn’t have a significant impact on its credit rating or dividend policy. Reuters
The stock had already surged ahead of the news. Singtel closed Tuesday up 4.7% at S$4.86, with trading volume topping 40 million shares, following weekend reports hinting that a deal was near. The Business Times
KKR and Singtel-managed funds have agreed to buy the remaining 82% stake in STT GDC from ST Telemedia for S$6.6 billion in cash. This values the enterprise at roughly S$13.8 billion, including debt.
KKR will own 75% of STT GDC after converting existing redeemable preference shares, the companies said, with Singtel retaining a 25% stake. The deal is expected to close early in the second half of 2026, pending regulatory approvals.
Singtel’s equity stake comes to S$740 million, paid from its own cash reserves, the exchange announcement revealed. The buyer has also lined up S$5 billion in debt facilities to cover the purchase price and upcoming capital spending, the filing added.
Singtel Group Chief Financial Officer Arthur Lang described the acquisition as “a significant step” toward expanding the group’s digital infrastructure growth engine. Singtel added that combining STT GDC with its regional data-centre unit Nxera would boost their total design capacity to roughly 2.8 gigawatts.
Phillip Securities’ head of research Paul Chew described the deal as a “funnel for growth” extending past 2028. He added that the valuation—high teens on an enterprise-value-to-EBITDA basis—seemed “fair,” considering STT GDC’s growth prospects and its footprint in Asia; EBITDA here serves as a rough stand-in for operating cash earnings. Reuters
David Luboff of KKR called digital infrastructure “one of the most compelling long-term investment themes globally,” highlighting cloud computing and data-heavy applications. The joint release noted that STT GDC now boasts 2.3GW of design capacity across 12 markets. Since KKR and Singtel’s initial stake in 2024, its development pipeline has grown further.
There’s a governance snag here. Singtel pointed out that Temasek is its controlling shareholder, and the seller is an indirect Temasek subsidiary. This makes the deal an “interested person transaction” under SGX rules — essentially a related-party transaction requiring additional disclosure.
But the deal carries risks. It still requires approvals, and data centres demand heavy capital investment while facing power limitations and rising construction expenses. If AI and cloud demand slow down, returns could suffer even as debt and capex increase.
Investors now turn to updates on financing terms and specifics about Nxera’s integration, keeping an eye on the regulatory schedule ahead of a planned close in early H2 2026. Reuters
