AsiaPhos, which is in solar and clean energy, plans to acquire a data centre in Australia valued at A$15 million. The data centre is now held by a company that is an associate of another SGX-listed company Figtree Holdings.
Under terms of a non-binding agreement, AsiaPhos plans to acquire 51% of an entity called DC Alliance by paying new shares at one cent each, or, the issue price of placement shares issued for this acquisition, if lower.
DC Alliance's principal asset is the DCA PIER data centre at 1 Martin Place, Canning Vale, Western Australia.
"Further details on the vendors will be provided in the company’s announcement upon the signing of the definitive agreements," says AsiaPhos.
"The proposed acquisition would provide the group with an opportunity to expand into the data centre business through the acquisition of a majority interest in the target," says AsiaPhos, and with expansion potential, give it "additional business opportunities in the data centre sector."
In a separate announcement later in the day, Figtree Holdings says that DC Alliance is its indirect associate. It now holds 26.45% in the data centre business and upon completion of the deal with AsiaPhos, its stake will be reduced to 13%.
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In a separate press release later in the day, AsiaPhos describes the data centre as one that is near Perth with a 2MW power facility with a 700kW IT load. The facility can be expanded to up to 8MW.
"Pier DC is situated in Perth, Australia which is rapidly emerging as a key strategic hub for hyperscalers and AI-ready data centres, driven by its direct subsea cable connectivity to Southeast Asia, Africa, and the Middle East, along with the growing need for data sovereignty in Western Australia," says Ong Eng Keong, CEO of AsiaPhos.
"This proposed acquisition positions AsiaPhos to create more sustainable, future-ready value. The planned expansion to 8MW will help drive a "multi-fold" increase in Pier DC's revenue, he adds.
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"With the additional resources of AsiaPhos, Pier DC shall be exploring acquiring customers in the AI industry and expanding its presence in Western Australia,” says Roy Wong, CEO of DC Alliance.
In February this year, AsiaPhos had announced a non-binding strategic partnership with China Mobile International to grow data centre and AI computing services in Indonesia, Malaysia and Singapore.
Under terms of this agreement, CMI will introduce potential customers to AsiaPhos in the areas of DC and AI computing services projects.
In the event these potential customers became customers of AsiaPhos, AsiaPhos will consider CMI as top priority when it comes to DC fit-out works, detailed design and mechanical,
electrical and plumbing equipment, procurement and works for the projects.
“We look forward to their support in Pier DC,” says Ong.
AsiaPhos shares gained 12.5% to trade at 0.9 cent ahead of the lunch break.
Figtree Holdings last traded at 3.5 cents.
