Ayala Corp, Globe ink data center deal with SG firm
Ayala Corp-led telco Globe Telecom Inc. signed a joint venture partnership with its parent company and Singapore-based IT company ST Telemedia Global Data Centres (STT GDC) to mark its entry into the Philippine data center space.
In a disclosure to the Philippines Stock Exchange, Globe said that both companies will buy new shares in the telco’s subsidiary KarmanEdge Inc., which will house the data center venture.
Globe will remain the largest shareholder in the firm with 50% of the shares, STT GDC will have 40%, while the remaining stakes will go to Ayala.
Globe President and CEO Ernest Cu said that “this venture is poised to be a significant player in this space for years to come.”
The company is expected to bag a post-money valuation of about $350 million and rake in $100 million once the data center is operational.
Globe will also recognize a pre-tax gain of around P10.5 billion (US$204 million) which will come from “partial monetization of its current data center business coupled with the revaluation of the carrying value of Globe’s retained interest.”
This investment is expected to be successful as Research and Markets reported that the Philippine data center industry could enjoy a compounded annual growth rate (CAGR) of 11.4% from 2021 to 2026.
