Globe Telecom Inc. yesterday officially sealed its $350-million partnership with ST Telemedia Global Data Centres (STT GDC) and Ayala Corp. (AC) to pursue its entry into the data center business.
Under the agreement, both STT GDC and AC shall subscribe to new shares in Globe’s wholly owned subsidiary KarmanEdge that will house the carved-out data center business.
The capital infusion by the new partners will result in a post-money valuation in the range of $350 million. Globe will receive proceeds of $100 million from the transaction with the remaining capital injected to be utilized by the business for future expansion and growth.
Through the execution of this transaction, Globe said it will recognize a pre-tax gain of around P10.5 billion, coming from the partial monetization of its current data center business coupled with the revaluation of the carrying value of company’s retained interest.
“We are excited about the future of Globe in the data center space. With Globe’s deep understanding of its customers, STT GDC’s technical expertise and Ayala’s compelling business reach, this venture is poised to be a significant player in this space for years to come,” Ernest Cu, Globe president and chief executive officer, said in a statement.
Globe, together with STT GDC and AC, aims to fast-track expansion efforts and innovation to better serve its enterprise clients and expand its product portfolio to grab a larger share of the growing market opportunity.
Currently, 43 percent of STT GDC’s data centers are operating with power derived from renewable sources, with an ambitious 2030 carbon-neutral target for all its data centers. Globe said this deal also demonstrates its commitment to improve the information and communications technology infrastructure in the country.
The transaction is fully aligned with its view of the value and significant opportunity of the data center space in the Philippines, given current market demand and the country’s strategic location in the region, Globe added.
Post execution of the share subscription agreement, Globe said it will remain the largest shareholder with a 50 percent ownership, followed by STT GDC with 40 percent and AC taking up the balance. – Myla Iglesias
