KKR arm, Singtel gets CCI's approval to acquire stake in STT GDC

The Competition Commission of India (CCI) on Tuesday cleared KKR-affiliate Ruby Asia Holdings II and Singtel's proposal to acquire a stake in STT GDC.

ST Telemedia Global Data Centres (STT GDC) is a wholly-owned subsidiary of Singapore Technologies Telemedia.

STT GDC through its indirect subsidiary STT Global Data Centres India Pvt Ltd (STT GDC India) provides critical services, including high-quality colocation, connectivity, and round-the-clock support services.

Global investment firm KKR through its arm Ruby Asia Holdings II is acquiring a stake in the company.

"Commission approves acquisition of shares of STT GDC Pte Ltd by Ruby Asia Holdings II Pte Ltd and Singtel Interactive Pte Ltd subject to compliance of certain voluntary commitments submitted by the parties," CCI said in a release.

 

Singtel Interactive Pte (Singtel) is a wholly-owned subsidiary of Singtel Telecommunications Ltd.

The Singtel Group is an Asian communications technology group, operating connectivity, digital infrastructure and digital businesses, and has a presence in Asia, Australia and Africa.

In June, ST Telemedia Global Data Centres, KKR and Singtel jointly announced the signing of definitive agreements under which a KKR-led consortium of KKR and Singtel will invest SGD 1.75 billion ($ 1.3 billion) in STT GDC.

This transaction marks the largest digital infrastructure investment in Southeast Asia to date in 2024.

The transaction comprises an initial Singapore dollar (SGD) 1.75 billion ($ 1.3 billion) investment by the consortium via redeemable preference shares, with detachable warrants.

Upon exercise of the warrants in full, the consortium will invest an additional SGD 1.24 billion ($ 920 million).

The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.