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
[SINGAPORE] Shares of Singtel rose S$0.23 or 5.4 per cent on Thursday (Nov 6) to an all-time high closing price of S$4.50.
The counter climbed consistently throughout the day, hitting an intraday peak of S$4.49 at 3.46 pm, S$0.22 above the previous day’s close of S$4.27.
This came amid heavy trading; by 4.05 pm, nearly 38.7 million shares had changed hands. By the end of the trading day, more than 50.3 million shares had been traded.
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.
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.
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