Singtel Sells 20% Stake in S$5.5 Bil Regional Data Centre Business: Top 5 Highlights for Singapore Investors

September 18, 2023

Singtel stock earnings

Singapore’s telecommunications powerhouse, Singapore Telecommunications Limited (SGX: Z74), has unveiled a strategic partnership with global titan KKR, selling 20% of its regional data centre (RDC) segment for a substantial S$1.1 billion.

This arrangement not only places a S$5.5 billion valuation on the RDC wing but also underscores Singtel’s ambitious pursuits in pivotal Southeast Asian regions such as Singapore, Indonesia, and Thailand.

With the globe’s hunger for data growing exponentially, Singtel’s move solidifies its stature as a contender worth monitoring.

Here are five key highlights for Singapore investors.

  1. The deal establishes a strong valuation for Singtel’s data centre division.

  2. Singtel’s RDC unit reported robust earnings in Q1 2024 with S$72 million in revenue and an EBITDA of S$44 million.

  3. Singtel achieved 99% utilisation rate for its data centres in Q1 2024 and is expanding.

  4. The company plans to add another 200MW capacity, indicating higher growth potential for the RDC unit.

  5. Bloomberg data suggests a positive outlook for Singtel, with a potential rise of 27.1% in its share price.

Source: Bloomberg, ProsperUs

In conclusion, Singtel’s significant agreement with KKR emphasises its vision for rapid growth in the Southeast Asian data centre landscape. Couple this with solid earnings, optimal utilization metrics, and overwhelming analyst support, Singtel is distinctly poised for a dynamic, data-centric future.

Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.

Billy Toh

Billy is passionate about the capital market and believes in investing for the long haul. Prior to this, he was an economist at RHB Investment Bank, covering Thailand and Philippines market. He also worked as a financial journalist at The Edge Malaysia and has experience working with an asset management firm. Aside from the capital market, Billy loves a good conversation over a cup of coffee, is a fitness enthusiast and a tech geek.

Share this

Subscribe to our weekly
newsletter and stay updated!

Receive up to S$120*
when you open a ProsperUs Account today
Find Out More