Philippine telco Globe is to carve out data its centre operations, creating a new subsidiary called KarmanEdge, Inc.
Globe rebranded as a digital telco in September and said in November that it was considering this option and submitted documents to the Philippines Stock Exchange (PSE).
The stock subscription agreement relating to the transaction was signed and submitted to the exchange. It confirmed the launch of KarmanEdge, a joint venture between Globe and ST Telemedia Global Data Centres (STT GDC) with Philippines-based conglomerate Ayala Corporation (AC) also on board.
Together, the three will develop, construct and operate data centre projects in the Philippines.
Post execution of the share subscription agreement, Globe will remain the largest shareholder with a 50% ownership, followed by STT GDC with 40% and AC taking up the balance.
“The Philippines is an underserved market with huge demand for data centre services," said Ernest Cu (pictured), Globe president and CEO.
"Together with STT GDC’s deep expertise and experience in developing, owning and operating data centres 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 centre space in the Philippines.
“Our partnership with STT GDC and AC will be a step forward in our ambition to transform the country’s digital infrastructure by building and operating the most energy efficient and connectivity-rich data centres in the country,” Cu added.
With all three backing the venture financially, KarmanEdge, Inc launches with a post-money valuation of US$350 million. Globe will receive proceeds of $100 million from the transaction with the remaining capital injected to be utilised by the business for future expansion and growth.
Under the agreement, both STT GDC and AC shall subscribe to new shares in KarmanEdge, Inc.
On the portfolio, KarmanEdge, Inc., has the potential to expand by up to 100MW in the mid to long term. Globe has ambitions to capture "the significant and growing demand for data centre services in the country, both from local enterprises and global hyperscalers, including some of the biggest content providers in the world".
Source: https://www.capacitymedia.com/articles/3830877/globe-finalises-data-centre-carve-out-names-partners