Singtel shares close 2.6% lower after 2-day rally on STT GDC deal
The telco and KKR will acquire the remaining 82% stake that they do not own in STT GDC
Add BT as a preferred source
[SINGAPORE] Shares of Singtel fell as much as 3.9 per cent after surging for two days, following the confirmation of its purchase of data centre operator ST Telemedia Global Data Centres (STT GDC) as part of a KKR-led consortium.
The counter dropped as low as S$4.72 as at 1.57 pm on Thursday (Feb 5), down S$0.19 from its previous closing price of S$4.91. It pared some losses by market close, ending S$0.13 or 2.6 per cent lower at S$4.78.
Singtel shares had climbed 1 per cent on Wednesday to close S$0.05 higher after the deal was announced, having run up 4.7 per cent the day before in anticipation of the transaction.
The telco and private equity player KKR will acquire the remaining 82 per cent stake that they do not own from STT GDC’s parent company, ST Telemedia, for S$6.6 billion.
Upon completion of the deal in the second half of 2026, Singtel and KKR will own stakes of 25 and 75 per cent, respectively, in STT GDC.
The fall in Singtel shares also briefly reversed a rising momentum for the Straits Times Index (STI), which has been climbing towards the 5,000-point mark this year.
SEE ALSO
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
The STI rose 0.4 per cent on Wednesday to an all-time closing high of 4,965.5. On Thursday, it slipped about 0.2 per cent as at 1.57 pm, but ended the day higher – up 0.2 per cent at 4,975.87.
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Copyright SPH Media. All rights reserved.
