Globe Telecom and Ayala Corp. form $350 million company with data center expansion partner

By Yifan Wang

Two of the Philippines’ largest conglomerates, Globe Telecom Inc. and Ayala Corp., have formed a $350 million joint venture with Singapore-based ST Telemedia Global Data Centers to build data centers in the South Asian country. South East.

The new partnership will be housed in the unit of Globe, with KarmanEdge, Inc., with ST Telemedia Global taking a 40% stake and Ayala holding 10%. Globe will remain the largest shareholder with a 50% stake, the companies said in a joint statement Wednesday.

The deal would give the company a post-money valuation of more than $350 million, the companies said. Globe will receive $100 million in proceeds from the transaction, while the rest of the newly injected capital will be used for future business expansion.

The transaction, which is expected to close in the first quarter, will be subject to customary closing conditions, including relevant regulatory approvals, the companies said.

The data center market, which promises sustained growth potential as online business continues to increase, has become an increasingly attractive new area for global telecom operators as they search for new drivers growth in a context of increasing market saturation in their mobile and broadband activities. Globe has operated a data center business in the Philippines since 2001 through a wholly owned unit, Innove Communications Inc.

Write to Yifan Wang at [email protected]

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