KKR’s purchase price of $1.1 billion for a 20% stake in SingTel’s RDC, translates into an enterprise value (EV) of $5.5 billion, and an historic EV/Ebitda multiple of 32x for the Digital Infrastructure Co. According to the presentation, 62MW is online, with plans to develop around 200MW. The current capacity of 62MW represents just 31% of total future capacity of 200MW.
On Aug 18, on the surface, valuations of data centres appeared to be given a shot in the arm by the transaction between KKR and Singapore Telecommunications’ (SingTel) (SGX:Z74
) regional data centres (RDC) segment. But this may not be the case.
According to a presentation by SingTel on Aug 23 this year, its Digital Infrastructure Co under which the RDC business is parked, recorded revenue of $72 million, and ebitda of $44 million in 1QFY2024 for the three months ended June, compared to revenue of $273 million and ebitda of $172 million in FY2023.
