Globe Telecom, Inc. on Wednesday, March 2, 2022, announced a joint venture with parent firm Ayala Corp. and ST Telemedia Global Data Centres (STT GDC) for the development, construction and operation of data center projects in the Philippines.
Ayala and STT will subscribe to new shares of KarmanEdge, Inc., a 100% owned subsidiary of Globe that will house the carved-out data center business. Globe will remain the largest shareholder with a 50% ownership, followed by STT GDC with 40% and AC taking up the balance.
The capital infusion by the new partners will result in a post-money valuation of KarmanEdge at over US$350 million. Globe will receive proceeds of US$100 million from the transaction with the remaining capital injected to be utilized by the business for future expansion and growth.
The transaction is expected to be completed in the first quarter of 2022. It will be subject to customary closing conditions, including relevant regulatory approvals.
Globe has been operating data centers in the Philippines since 2001 through wholly owned subsidiary Innove Communications, Inc.
This venture will accelerate efforts to scale up Globe's data center capacity and capabilities to address the growing demand for data center services in the country, both from local enterprises and global hyperscalers.
"The Philippines is an underserved market with huge demand for data center services. Together with STT GDC's deep expertise and experience in developing, owning and operating data centers globally, and AC's significant business reach, relationships in the country and in the region, we believe that this joint venture will be well-positioned to become the leader in the data center space in the Philippines," said Ernest L. Cu, president and CEO of Globe Telecom.
"With Globe's well-established digital solutions platform and our data center expertise, we are confident that through our partnership, we can build a leading data center platform in the country. This venture will enhance our offerings to support enterprises as they grow their digital infrastructure in the Philippines and the wider APAC region," said Bruno Lopez, president and group CEO of ST Telemedia. (Marites Villamor-Ilano/Ventures Cebu)