TIME sells data centre stake to DigitalBridge for US$440mil


Afzal Abdul Rahim

SINGAPORE: Malaysian telecoms firm dotCom is selling a major stake in its data centre business to U.S. infrastructure investor DigitalBridge Group for about 2 billion ringgit ($437.64 million), the companies announced on Tuesday.

The deal, announced at a time of political upheaval in Malaysia, underscores booming demand for infrastructure assets such as data centres in Southeast Asia as investors are lured by their stable, long-term returns.

will sell 49% of the ordinary shares and 100% of the irredeemable convertible preference shares in AIMS Data Centre Holding, and 21% of the ordinary shares in AIMS Data Centre (Thailand), according to the statement.

Proceeds from the stake sales will be partly used by to pay a special dividend of up to 1 billion ringgit to its shareholders, 's Commander-in-Chief Afzal Abdul Rahim said in the statement.

The balance will be reinvested into , he added.

The deal gave the AIMS business an enterprise value of 3.2 billion ringgit and compares to the 119 million ringgit paid to buy it in 2012, according to the company. AIMS' current book value is 240 million ringgit.

"This strategic partnership allows us to crystallise substantial value from the investment we have made in AIMS over the years," Afzal said.

Shares of rose 5.2% on Tuesday to their highest since Aug. 30 following the announcement.

The transaction is expected to close by the end of the second quarter next year. - Reuters

Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!
   

Next In Business News

CPO futures to trade on upside bias next week on expectation of weaker output
Oil gains over 2% but posts seventh weekly decline
In China’s slowing beauty market, big-brand discounts won’t cut it
YTL Power and Nvidia in AI collaboration
Westports inks deal with govt to expand terminals
Succession planning and moving in the right direction
Bank Pembangunan has plenty of potential
Setting the standards the Gamuda way
Singapore signs deal with Latin American bloc
Critical factors to consider before MLFF rollout

Others Also Read