STT GDC Pte. Ltd. announced that it will receive SGD 1,750,000,000 in a round of funding on June 18, 2024. The transaction will include participation from new investors, Singapore Telecommunications Limited for SGD 400,000,000 and funds managed by KKR & Co.

Inc.. KKR & Co. Inc will invest through KKR Asia Pacific Infrastructure Investors II SCSp.

The company has entered into definitive agreements with new investors in the transaction. The company will issue redeemable non-voting preference shares, with detachable warrants in the transaction. The detachable warrants will be subscribe for ordinary shares of the company.

The preference shares carry accruing dividends at a rate of 6.5 percent per annum if paid on a cash basis. The investors may exercise the warrants any time in the next seven years if the investors inject an additional SGD 1,240,000,000. Out of SGD 1,240,000,000, Singapore Telecommunications Limited will invest SGD 284,000,000.

Post exercise of warrants in full and inject of additional SGD 1,240,000,000, the new investors will take 18.3% combined stake in the company. KKR & Co. Inc. will hold 14.1% stake, and Singapore Telecommunications Limited will hold 4.2% stake.

Post completion of transaction, returning investor ST Telemedia continues to be the majority shareholder of the company. The closing of the transaction is subject to the satisfaction of certain conditions precedent including regulatory approvals.