ST Telemedia to buy 74% stake in Tata Comm's data centre biz

Singapore Technologies Telemedia will acquire 74% stake in Tata Communications' data centre business in India and Singapore for about Rs 3,150 crore.

The deal will include Tata Communications' 14 data centres across India and three facilities in Singapore. Both parties will work in partnership to ensure service continuity for customers and employee engagement, Tata Communication said in a statement.

"ST Telemedia Global Data Centres (STT GDC) will acquire 74% majority stake in Tata Communications' data centre business in India and Singapore. Tata Communications will remain a significant shareholder, holding the remaining 26% stake in the businesses," the companies said in a joint statement.

In 2014, the Indian data centre business of Tata Communications was transferred to its wholly-owned subsidiary Tata Communications Data Centres Private Ltd (TCDC) through a High Court approved process.

TCDC owns and operates a total of fourteen data centres, including facilities in Delhi, Mumbai, Bengaluru, Chennai, Kolkata, Hyderabad and Pune.

In a BSE filing, Tata Communications said that ST Telemedia will acquire 74% stake in company's "data centre business in India and Singapore for an estimated 100% enterprise value of Rs 31.3 billion and SGD 232.4 million".

Taking both the amounts under consideration, the deal size comes to around Rs 3,150 crore.