Singtel rises 5.4% to all-time high amid talks of US$3.9 billion data-centre deal

The telco and KKR & Co are in the late stages of discussions to buy more than 80% of ST Telemedia Global Data Centres for over S$5 billion

Shares of Singtel rose S$0.23 or 5.4 per cent on Thursday (Nov 6) to close at an all-time high of S$4.50.

The counter’s climb came amid heavy trading; by the end of the trading day, more than 50.3 million shares had changed hands.

Singtel’s rise comes on the back of news that the telco and KKR & Co are in advanced talks to buy more than 80 per cent of ST Telemedia Global Data Centres – which would give them full ownership – for over US$3.9 billion.

KKR currently owns about 14 per cent of the firm; Singtel owns more than 4 per cent.

The rest of the company is held by ST Telemedia, which is wholly owned by Singapore investment company Temasek.

If successful, the deal would rank among Asia’s biggest data-centre transactions, with the boom in artificial intelligence (AI) creating soaring demand for digital infrastructure.

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Separately, a Singtel unit has offered to sell shares in Indian mobile carrier Bharti Airtel in a deal that may fetch 103.5 billion rupees (S$1.52 billion), according to a Bloomberg report, citing terms of the offering.

Singtel’s Thursday closing price surpasses its previous high of S$4.41 recorded in mid-September. That peak was supported by the news of Singtel’s data-centre arm, Nxera, developing a new generation of more sustainable, AI-ready data centres to support the advancement of the technology in Singapore and the region.