By Amanda Lee
Shares of Singtel rose as high as a near three-month high on Tuesday, amid growing expectations that it is closing in on a potential deal for a Singapore-based global data-center provider with private equity firm KKR.
The Singapore-listed telecommunications company rose as much as 5.2% to 4.88 Singapore dollars, equivalent to US$3.84. It was last up 5.0%, on track for its biggest one-day percentage gain since early November.
The Wall Street Journal reported Sunday, citing people familiar with the matter, that the global investment firm is nearing a deal to acquire ST Telemedia Global Data Centres from its parent company. KKR is making the acquisition together with Singtel, the report said.
ST Telemedia, the parent company, currently holds more than an 80% stake in STT GDC, with the KKR-led group holding the remainder. The consortium acquired the minority stake in 2024 for about US$1.3 billion.
Singapore state investment firm Temasek Holdings is the parent of ST Telemedia.
Discussions are at an advanced stage and there is no certainty they will lead to a definitive or binding agreement, Singtel said Sunday.
"We view the development positively to strengthen its regional data center business, a key growth engine benefiting from strong global artificial intelligence tailwinds," RHB Research analysts wrote in a report.
There is further upside potential to Singtel's share price, driven by factors such as positive earnings execution and capital recycling, RHB said. The brokerage maintains a buy rating on the stock and target price of S$5.20.
Write to Amanda Lee at amanda.lee@wsj.com
(END) Dow Jones Newswires
02-02-26 2254ET
