Thai banks weigh stake sale in data centre operator

Thai banks weigh stake sale in data centre operator

Photo: Nutthawat Wicheanbut
Photo: Nutthawat Wicheanbut

Thailand’s biggest banks are considering a stake sale in data centre company Supernap Thailand, according to people familiar with the matter, riding on the increasing investor appetite for the industry.

Shareholders of Supernap Thailand, including Siam Commercial Bank (SCB) Plc and Kasikornbank (KBank) Plc, are working with a financial adviser to help find a minority investor in the business, the people said. Supernap Thailand, which was a joint venture between some of the country’s biggest firms and United States data centre giant Switch Inc, could be valued at about US$800 million in a transaction, the people said.

The sale has drawn preliminary interest from other industry players and investment funds, said the people, asking not to be identified because the matter is private. Switch is not planning to exit, one of the people said.

Considerations are preliminary and no final decision has been made, the people said. Representatives for KBank, SCB, Supernap Thailand and Switch did not immediately respond to requests for comment.

Supernap Thailand was formed in 2016 as a joint venture between some of the biggest companies in Thailand and Las Vegas-based Switch with a $300 million investment in the country’s eastern province Chonburi. Supernap Thailand’s tier-four data centres, which are located 110 meters above sea level are the first hyperscale data centres in Thailand, according to its official presentation on Youtube.

Data center companies have been attracting strong takeover interest, in part due to the perception they have stable returns and expectations of ongoing growth as people increasingly rely on technology. In Thailand, True Internet Data Center Co, a unit of Thai conglomerate Charoen Pokphand (CP) Group, is seeking to raise about $150 million from a sale of a minority stake, Bloomberg News has reported.

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