Singapore Telecommunications Limited (Singtel) saw its shares surge 5.11% in early trading on Friday, following news of the company's involvement in discussions regarding data centre operator STT GDC Pte. Ltd. The telecommunications giant's stock price rose sharply as investors reacted positively to the potential expansion in the lucrative data centre market.
Singtel confirmed in a statement that it is part of a consortium engaged in ongoing discussions concerning STT GDC. This announcement comes on the heels of a Reuters report suggesting that Singtel and private equity firm KKR & Co. are in advanced talks to fully acquire ST Telemedia Global Data Centres for over US$3.9 billion. The move, if successful, could significantly bolster Singtel's position in the rapidly growing data centre industry.
However, Singtel has cautioned that these discussions may not necessarily lead to any definitive or binding agreement. The company pledged to update the market in accordance with Singapore Exchange rules if there are any material developments. Despite the uncertainty, investors appear optimistic about the potential deal, as reflected in the substantial stock price increase. Singtel's strategic interest in expanding its data centre operations aligns with the global trend of increasing demand for digital infrastructure and cloud services.
