KKR and Singtel Acquire 82% Stake in STT GDC for S$6.6 Billion
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy KKR?
Source: Newsfilter
- Massive Transaction: KKR and Singtel have signed agreements to acquire an 82% stake in ST Telemedia Global Data Centres for S$6.6 billion (approximately US$5.1 billion), reflecting a total enterprise value of about S$13.8 billion (approximately US$10.9 billion), highlighting strong investment interest in Southeast Asia's digital infrastructure.
- Market Leadership: STT GDC boasts a design capacity of 2.3GW across Asia Pacific and the UK and Europe, providing high-quality colocation and connectivity services, and is well-positioned for rapid growth as demand for AI and cloud services accelerates, likely enhancing its market share.
- Deepened Strategic Partnership: Post-transaction, KKR and Singtel will hold 75% and 25% stakes in STT GDC respectively, which not only strengthens Singtel's competitive edge in digital infrastructure but also offers KKR a unique opportunity to further support a high-quality platform and deepen their strategic collaboration.
- Future Growth Potential: The transaction is expected to close in the first half of 2026, and as STT GDC's leadership team continues to drive sustainable growth, the investments from both parties will provide a robust foundation for future cloud and AI demand, further solidifying their market position.
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Analyst Views on KKR
Wall Street analysts forecast KKR stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KKR is 159.67 USD with a low forecast of 145.00 USD and a high forecast of 176.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
9 Buy
0 Hold
0 Sell
Strong Buy
Current: 114.360
Low
145.00
Averages
159.67
High
176.00
Current: 114.360
Low
145.00
Averages
159.67
High
176.00
About KKR
KKR & Co. Inc. is a global investment firm that offers alternative asset management as well as capital markets and insurance solutions. The Company’s segments include Asset Management, Insurance and Strategic Holdings. Asset Management segment offers a range of investment management services to investment funds, vehicles and accounts and provides capital markets services to portfolio companies and third parties. Asset Management segment includes five business lines: Private Equity, Real Assets, Credit and Liquid Strategies, Capital Markets and Principal Activities. Insurance segment is operated by Global Atlantic, which is a United States retirement and life insurance company that provides a suite of protection, legacy and savings products and reinsurance solutions to clients across individual and institutional markets. Global Atlantic offers individuals fixed-rate annuities and others. Strategic Holdings segment represents its participation in its core private equity strategy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
KKR and Singtel Acquire 82% Stake in STT GDC for $5.1 Billion
- Large Transaction: KKR and Singapore Telecommunications are acquiring the remaining 82% stake in ST Telemedia Global Data Centres for S$6.6 billion ($5.1 billion), valuing STT GDC at S$13.8 billion, reflecting a surge in data center demand driven by the rise of artificial intelligence.
- Strategic Investment Significance: This deal represents KKR's largest infrastructure investment in the Asia Pacific to date, positioning the firm to capitalize on the accelerating global demand for cloud computing and AI workloads in the rapidly expanding data center market.
- Market Expansion Potential: STT GDC operates across 12 markets in Asia Pacific, the UK, and Europe with a design capacity of 2.3 gigawatts, enhancing Singtel's competitive edge in the global data center market by providing services to hyperscalers and enterprise customers.
- Digital Infrastructure Outlook: David Luboff, co-head of KKR Asia Pacific, emphasized that digital infrastructure remains one of the most compelling long-term investment themes globally, with STT GDC's diversified footprint and development pipeline promising substantial returns for investors.
See More
KKR and Singtel Acquire 82% Stake in STT GDC
- Significant Transaction: KKR and Singtel have signed agreements to acquire an 82% stake in ST Telemedia Global Data Centres for S$6.6 billion (approximately US$5.1 billion), reflecting a total enterprise value of approximately S$13.8 billion (around US$10.9 billion), indicating strong confidence in the data center market.
- Market Leadership: STT GDC boasts a design capacity of 2.3GW across Asia Pacific and the UK and Europe, positioning itself as one of the fastest-growing and most diversified data center platforms globally, catering to the surging demand for AI and cloud services, thus driving future sustainable growth.
- Deepened Strategic Partnership: Following the acquisition, KKR and Singtel will hold 75% and 25% stakes in STT GDC respectively, enhancing their collaboration in digital infrastructure and creating new opportunities for capital optimization and growth.
- Positive Future Outlook: The transaction is expected to close in the second half of 2026, with KKR and Singtel's investment set to accelerate STT GDC's expansion, further solidifying its critical role in the global digital economy and addressing the demand for resource-intensive workloads.
See More
KKR and Singtel Acquire 82% Stake in STT GDC for S$6.6 Billion
- Massive Transaction: KKR and Singtel have signed agreements to acquire an 82% stake in ST Telemedia Global Data Centres for S$6.6 billion (approximately US$5.1 billion), reflecting a total enterprise value of about S$13.8 billion (approximately US$10.9 billion), highlighting strong investment interest in Southeast Asia's digital infrastructure.
- Market Leadership: STT GDC boasts a design capacity of 2.3GW across Asia Pacific and the UK and Europe, providing high-quality colocation and connectivity services, and is well-positioned for rapid growth as demand for AI and cloud services accelerates, likely enhancing its market share.
- Deepened Strategic Partnership: Post-transaction, KKR and Singtel will hold 75% and 25% stakes in STT GDC respectively, which not only strengthens Singtel's competitive edge in digital infrastructure but also offers KKR a unique opportunity to further support a high-quality platform and deepen their strategic collaboration.
- Future Growth Potential: The transaction is expected to close in the first half of 2026, and as STT GDC's leadership team continues to drive sustainable growth, the investments from both parties will provide a robust foundation for future cloud and AI demand, further solidifying their market position.
See More
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- Market Panic Intensifies: Private equity stocks plummeted sharply on Tuesday as a violent selloff in software shares raised concerns about potential stress in credit portfolios, leading to a downturn in investor sentiment.
- Software Industry Crisis: Software valuations have been undermined by rising competition from generative AI platforms and slowing enterprise spending, with the iShares Expanded Tech-Software Sector ETF (NYSE:IGV) dropping for the sixth consecutive session, reaching lows not seen since April 2025.
- Concentration Risk in Private Equity: The software sector has represented approximately 25% of total private equity buyout deal value in recent years, leaving some lenders exposed to companies facing earnings and valuation pressures due to this concentration.
- Changing Liquidity Environment: Macro strategist Andreas Steno Larsen warned that larger listed players in private credit, such as Apollo, are effectively high-beta liquidity proxies, suggesting that they share similar trading characteristics with Bitcoin, reflecting the expansion of the “shadow” monetary system.
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- IPO Preparation: KKR is preparing for an initial public offering of Wella Company, owner of OPI nail polish, with expectations that the IPO could value Wella significantly above the $4.3 billion KKR paid in 2020, indicating strong market demand for the brand.
- Investment Bank Collaboration: Wella is working with investment banks including Bank of America and Goldman Sachs to facilitate the listing process, which not only enhances the company's market profile but may also attract more investor interest.
- Equity Structure Changes: KKR acquired a 60% stake in Wella from Coty in 2020 and purchased Coty's remaining 25.8% stake for $750 million last December, further solidifying its control over Wella and laying the groundwork for the upcoming IPO.
- Positive Market Response: Although KKR, Wella, and their banking partners declined to comment on the IPO, the market remains optimistic about Wella's future performance, with expectations that the listing will yield substantial returns for KKR and strengthen its investment portfolio in the beauty sector.
See More
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Impact on Business Development Companies: Fresh fears surrounding artificial intelligence are negatively affecting the stock prices of business development companies that provide high-rate, private-credit loans to technology firms.
Effect on Alternative Investment Managers: Alternative investment managers with exposure to private credit are also experiencing declines due to these AI-related concerns.
See More
KKR and Singtel Acquire 82% Stake in STT GDC for $5.1 Billion
- Large Transaction: KKR and Singapore Telecommunications are acquiring the remaining 82% stake in ST Telemedia Global Data Centres for S$6.6 billion ($5.1 billion), valuing STT GDC at S$13.8 billion, reflecting a surge in data center demand driven by the rise of artificial intelligence.
- Strategic Investment Significance: This deal represents KKR's largest infrastructure investment in the Asia Pacific to date, positioning the firm to capitalize on the accelerating global demand for cloud computing and AI workloads in the rapidly expanding data center market.
- Market Expansion Potential: STT GDC operates across 12 markets in Asia Pacific, the UK, and Europe with a design capacity of 2.3 gigawatts, enhancing Singtel's competitive edge in the global data center market by providing services to hyperscalers and enterprise customers.
- Digital Infrastructure Outlook: David Luboff, co-head of KKR Asia Pacific, emphasized that digital infrastructure remains one of the most compelling long-term investment themes globally, with STT GDC's diversified footprint and development pipeline promising substantial returns for investors.
See More
KKR and Singtel Acquire 82% Stake in STT GDC
- Significant Transaction: KKR and Singtel have signed agreements to acquire an 82% stake in ST Telemedia Global Data Centres for S$6.6 billion (approximately US$5.1 billion), reflecting a total enterprise value of approximately S$13.8 billion (around US$10.9 billion), indicating strong confidence in the data center market.
- Market Leadership: STT GDC boasts a design capacity of 2.3GW across Asia Pacific and the UK and Europe, positioning itself as one of the fastest-growing and most diversified data center platforms globally, catering to the surging demand for AI and cloud services, thus driving future sustainable growth.
- Deepened Strategic Partnership: Following the acquisition, KKR and Singtel will hold 75% and 25% stakes in STT GDC respectively, enhancing their collaboration in digital infrastructure and creating new opportunities for capital optimization and growth.
- Positive Future Outlook: The transaction is expected to close in the second half of 2026, with KKR and Singtel's investment set to accelerate STT GDC's expansion, further solidifying its critical role in the global digital economy and addressing the demand for resource-intensive workloads.
See More
KKR and Singtel Acquire 82% Stake in STT GDC for S$6.6 Billion
- Massive Transaction: KKR and Singtel have signed agreements to acquire an 82% stake in ST Telemedia Global Data Centres for S$6.6 billion (approximately US$5.1 billion), reflecting a total enterprise value of about S$13.8 billion (approximately US$10.9 billion), highlighting strong investment interest in Southeast Asia's digital infrastructure.
- Market Leadership: STT GDC boasts a design capacity of 2.3GW across Asia Pacific and the UK and Europe, providing high-quality colocation and connectivity services, and is well-positioned for rapid growth as demand for AI and cloud services accelerates, likely enhancing its market share.
- Deepened Strategic Partnership: Post-transaction, KKR and Singtel will hold 75% and 25% stakes in STT GDC respectively, which not only strengthens Singtel's competitive edge in digital infrastructure but also offers KKR a unique opportunity to further support a high-quality platform and deepen their strategic collaboration.
- Future Growth Potential: The transaction is expected to close in the first half of 2026, and as STT GDC's leadership team continues to drive sustainable growth, the investments from both parties will provide a robust foundation for future cloud and AI demand, further solidifying their market position.
See More
Private Equity Stocks Plummet Amid Software Selloff and Rising Credit Risks
- Market Panic Intensifies: Private equity stocks plummeted sharply on Tuesday as a violent selloff in software shares raised concerns about potential stress in credit portfolios, leading to a downturn in investor sentiment.
- Software Industry Crisis: Software valuations have been undermined by rising competition from generative AI platforms and slowing enterprise spending, with the iShares Expanded Tech-Software Sector ETF (NYSE:IGV) dropping for the sixth consecutive session, reaching lows not seen since April 2025.
- Concentration Risk in Private Equity: The software sector has represented approximately 25% of total private equity buyout deal value in recent years, leaving some lenders exposed to companies facing earnings and valuation pressures due to this concentration.
- Changing Liquidity Environment: Macro strategist Andreas Steno Larsen warned that larger listed players in private credit, such as Apollo, are effectively high-beta liquidity proxies, suggesting that they share similar trading characteristics with Bitcoin, reflecting the expansion of the “shadow” monetary system.
See More
KKR Prepares Wella Company for IPO
- IPO Preparation: KKR is preparing for an initial public offering of Wella Company, owner of OPI nail polish, with expectations that the IPO could value Wella significantly above the $4.3 billion KKR paid in 2020, indicating strong market demand for the brand.
- Investment Bank Collaboration: Wella is working with investment banks including Bank of America and Goldman Sachs to facilitate the listing process, which not only enhances the company's market profile but may also attract more investor interest.
- Equity Structure Changes: KKR acquired a 60% stake in Wella from Coty in 2020 and purchased Coty's remaining 25.8% stake for $750 million last December, further solidifying its control over Wella and laying the groundwork for the upcoming IPO.
- Positive Market Response: Although KKR, Wella, and their banking partners declined to comment on the IPO, the market remains optimistic about Wella's future performance, with expectations that the listing will yield substantial returns for KKR and strengthen its investment portfolio in the beauty sector.
See More
Blackstone Shares and Alternative Managers Plummet as Software Issues Impact Private Credit
Impact on Business Development Companies: Fresh fears surrounding artificial intelligence are negatively affecting the stock prices of business development companies that provide high-rate, private-credit loans to technology firms.
Effect on Alternative Investment Managers: Alternative investment managers with exposure to private credit are also experiencing declines due to these AI-related concerns.
See More
