Singapore’s CBD captured by Airbus Pléiades Neo 3 satellite in May. Launched in April 2021, the Pléiades Neo 3 is part of the Airbus Pléiades Neo constellation, which will comprise four identical satellites, offering reactive tasking and intraday revisit of any point on Earth. These satellites can capture images in 30cm resolution combined with accurate geolocation, thereby collecting a significant level of information required for precise large-scale mapping up to 1:2000 scale. Photo: Airbus
Quoteworthy: The real action in America is on wealth, not income - Senator Elizabeth Warren, following a report by ProPublica that the 25 richest Americans paid relatively little, or no taxes.
Digital Realty mulls US$300 million Singapore trust IPO
Digital Realty Trust, a data centre owner and operator, is considering an initial public offering of a trust in Singapore that could raise US$300 million ($397 million) to US$400 million, according to people familiar with the matter.
The US firm is working with advisers on the listing, which could come as soon as the end of the year, the people said. The potential investment vehicle’s portfolio is valued at around US$1 billion, they said, asking not to be identified as the process is confidential.
The listed entity will own about 10 data centres from around the world, one of the people said. It could be structured as a real estate investment trust or a business trust.
Deliberations are ongoing and details such as size and timing could change, the people said. A representative for Digital Realty Trust declined to comment.
The share sale would tap growing investor interest in data centres, with the coronavirus pandemic accelerating a shift to remote work and e-commerce adoption, both of which depend on cloud computing resources. Digital Realty Trust’s offering would be the second tech-related listing in Singapore this year, following electronics maker Aztech Global’s $297 million IPO in March.
Digital Realty Trust caters to several industries ranging from cloud and information technology services to banks, manufacturing, energy and health care. The Austin, Texas-based company’s portfolio consists of 290 data centres globally as of March 31, its latest earnings release showed.
Its customers include IBM, AT&T and National Australia Bank, according to the website. Digital Realty Trust completed the acquisition of Dutch data centre firm Interxion Holding for about US$7.2 billion last year. The US company in 2019 agreed to sell a portfolio of data centres to Singapore’s Mapletree Investments and Mapletree Industrial Trust in a two-part deal valuing the assets at about US$1.4 billion. The transaction was completed in early 2020. — Bloomberg
China and US agree to push forward trade, investment ties
The Chinese and US commerce ministers agreed to push forward trade and investment links in their first call since the start of the Biden administration.
Chinese Commerce Minister Wang Wentao and his counterpart Gina Raimondo “agreed to promote the healthy development of pragmatic cooperation in trade and investment”, in a phone call on June 10 morning China time. The two “exchanged views frankly and pragmatically on relevant issues and mutual concerns”, according to a Chinese government statement.
The call was the third between senior officials in recent weeks, after Vice Premier Liu He spoke with US Trade Representative Katherine Tai and Treasury Secretary Janet Yellen.
China stated in the previous week that normal communications between the two countries have started, according to Commerce Ministry Spokesman Gao Feng. The two sides have agreed to pragmatically solve some issues for producers and consumers, and promote healthy, stable economic and trade ties, he said.
However, US statements on the relationship with China are less positive. The trade relationship with China has “significant imbalance” and the Biden administration is committed to levelling it, Trade Representative Katherine Tai said on the weekend before a meeting of Asia-Pacific trade ministers.
There are parts of the US-China relationship “that are unhealthy and have over time been damaging in some very important ways to the US economy”, she said.
“I won’t get overly excited” about the call, said Alvin Tan, head of Asia currency strategy at RBC Capital Markets. “It’s positive in the sense that both countries are stepping up” economic and trade communication, but no game-changing decisions or announcements have come out, he said. — Bloomberg
Grab postpones completion of merger with US SPAC to 4Q2021
Singapore’s Grab Holdings has postponed the expected completion of its merger with a US blank-check company as the ride-hailing and food-delivery giant works on a financial audit of the past three years. The deal, set to be one of the largest-ever mergers with a blank-cheque company, is now expected to be completed in the fourth quarter of this year, the company said in a statement on June 9. When announcing the merger in April, Grab expected completion in the third quarter.
Grab said it is in the process of finalising its financial audit in accordance with Public Company Accounting Oversight Board standards as required by the US Securities and Exchange Commission (SEC). It is working with the SEC to get pre-clearance of certain accounting policies and related financial disclosures. As a result, its financial information for the past three years remains subject to review and revision, it said.
Grab is the latest company to be affected by intensifying scrutiny from US financial regulators on deals involving special purpose acquisition (SPAC) vehicles. A SPAC listing boom has pushed the number of predeal blank-check companies trading on US exchanges to more than 500.
“It’s not completely unsurprising to see a delay,” said Matthew Kanterman, an analyst with Bloomberg Intelligence. “The audit process can take several quarters, especially if there needs to be back and forth with the SEC over certain accounting decisions and policies.”
Grab, Southeast Asia’s most valuable startup, is trying to take advantage of the US-led SPAC listing craze even as its business continues to be affected by the coronavirus outbreak.
Consolidated gross merchandise value rose 5.2% to US$3.6 billion ($4.8 billion) in Q1, with 49% growth in food delivery helping to offset a decline in ride hailing, Grab said. The financial services segment expanded 17%. The company did not provide revenue or profit numbers.
Grab said in April it is set to have a market value of about $40 billion after the combination with Altimeter Growth Corp, the SPAC of Brad Gerstner’s Altimeter Capital Management. The combined entity’s stock will trade on the Nasdaq under the ticker GRAB after the completion of the deal. — Bloomberg
Correction
In our story “Developed economies face high debt and low growth after Covid-19” (Issue 987 June 7), the correct spelling of Capital Group’s investment director is Christophe Braun, and Lombard Odier’s chief investment officer is Stéphane Monier.
