Singapore-based ST Telemedia which owns one of Asia’s largest data centre operators, ST Telemedia Global Data Centres (STT GDC), is considering selling its entire stake in its China-based data center operator GDS Holdings Ltd., according to Bloomberg News quoting from sources familiar with the matter. ST Telemedia, which is backed by Temasek Holdings Pte, Singapore’s state investor, holds almost 34% of GDS’ Class A shares, representing about 20% of aggregate voting power, according to reports, citing GDS annual report.
W.Media had reported last month that KKR & Co is in advanced talks to buy STT GDC valued potentially at US$5 billion and that a deal could be reached within weeks.
GDS share price had shot up by almost 60 per cent in Hong Kong this year and over 220 per cent in the past 12 months due to the fervour over data center assets brought on by a boom in artificial intelligence. Its current market value stands at about US$7.4 billion.
Due to its high valuation, a deal might be difficult to be struck and ST Telemedia might just abandon the idea, according to the people. GDS also has a stake in DayOne Data Centres Singapore Pte, which is expanding rapidly in Southeast Asia, Hong Kong and Tokyo.
ST Telemedia declined to comment while GDS did not respond to press requests for comment.
