Tata Comms to sell 74% stake in data centre business to ST Telemedia
19 May 2016 |
Tata Communications is selling a 74% stake in its data centre business to Singapore-based ST Telemedia for approximately $640 million.
ST Telemedia – a unit of Singapore state-investment firm Temasek Holdings – will acquire a 74% stake in facilities within India and Singapore while Tata Communications will remain a shareholder with 26% in the business.
The deal will cover 14 data centres in Delhi, Mumbai, Bengaluru and Hyderabad as well as three in Singapore.
“Our new partnership also gives us the opportunity to redeploy capital behind other areas of our business to further broaden the portfolio of services we can offer to meet our customers’ current and future requirements,” Tata Communications Chief Executive Vinod Kumar said.
Kumar said the joint venture will enable the company to focus on advanced services within the data centre space such as hosting and data security while sharing the operation costs of building and maintaining the facilities.
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