Singapore Telecommunications (STEL.SI) has sold a 70% stake in its Australian tower network to superannuation fund AustralianSuper for A$1.9 billion ($1.37 billion), stating that the revenues will be used to fund the rollout of 5G and data centers.
Singtel said in a statement on Friday that the deal included the sale of 2,312 mobile network towers and rooftop sites, valuing the Australia Tower Network at A$2.3 billion.
Singtel will establish a regional data center platform, with an initial focus on countries in the Association of Southeast Asian Nations (ASEAN), in response to the COVID-19 epidemic, according to the announcement.
Gulf Energy, a Thai power and infrastructure firm, had inked a memorandum of understanding with the group to build and develop data centers across the country. Singtel is also in advanced talks with Telkom Indonesia to investigate the possibility of acquiring and developing data center assets in Indonesia and the region.
“The rise of digital technology and its accelerated adoption on the back of COVID-19 has had major implications for the physical infrastructure that facilitate and supports this overwhelming demand for data connectivity we are witnessing,” said Singtel’s Group Chief Executive Yuen Kuan Moon.
“From our telecom towers to our data centers, it is imperative that we restructure our assets and re-organize our business to better fund, improve and grow our digital infrastructure.”
