SPH to develop and run data-centre facilities with Keppel Corp units

SINGAPORE Press Holdings (SPH) is to develop and operate data-centre facilities in Genting Lane under a joint venture (JV) with listed conglomerate Keppel Corporation's subsidiaries.

In a regulatory filing, SPH announced that its indirect, wholly-owned subsidiary TPM Pte Ltd had on Monday incorporated a joint-venture company with Keppel units Keppel Griffin and Geras DC, to acquire the leasehold interest in 82 Genting Lane for S$50 million from another SPH subsidiary.

The JV company, named Memphis 1, will develop and operate data-centre facilities there. 

Memphis 1 and the vendor of the leasehold interest, Singapore News and Publications Limited, have entered into options, such that Memphis 1 has the option to purchase the leasehold interest in the property, and Singapore News and Publications has the option to sell this interest to Memphis 1.

Completion of the leasehold interest sale is expected on July 17.

TPM will own a 40 per cent stake in Memphis 1, with the JV company being an associated company of listed media and property player SPH and an indirect subsidiary of listed conglomerate Keppel Corp.

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Under the shareholders' agreement, both parties will contribute to the JV company by way of equity and bond subscriptions as well as debt securities.

Specificially, the Keppel units will contribute up to S$209 million, which includes S$2.1 million being the subscription price for their 60 per cent shareholding in the JV company, and about S$34.5 million in bonds to be issued by the JV company and to be subscribed by nominees of the Keppel units.

TPM will contribute up to about S$139.6 million, including S$1.39 million for the 40 per cent stake and S$23 million in bonds to be subscribed by its nominee.

The balance amount will be paid progressively by way of debt securities to be issued by the JV company from time to time, which will be subscribed by nominees of the shareholders.

Shares of SPH, the publisher of The Business Times, closed one Singapore cent lower at S$1.29; Keppel Corp shares were nine cents down at S$5.95 on Monday, before this announcement was made.