MANILA - Globe Telecom on Wednesday announced the formation of a joint venture with Ayala Corp and ST Telemedia Global Data Centers (STT GDC for data center projects in the Philippines.
Under the agreement, STT GDC and AC will subscribe to new shares in KarmanEdge Inc, a Globe subsidiary "that will house the carved-out data center business, which has the potential to expand by up to 100MW capacity in mid to long term," both Globe and AC said in separate disclosures to the stock exchange.
ST Telemedia Globa Data Centers is a data center provider which is headquartered in Singapore.
The capital infusion from the new partners will raise the valuation of KarmanEdge Inc to over $350 million, Globe said. Globe will receive $100 million while the remaining injected capital will be used for future expansion and growth.
Globe shall remain the largest shareholder with 50 percent ownership, followed by STT GDG with 40 percent and AC taking up the balance, Globe said.
The transaction is expected to be completed by the first quarter of 2021, it said.
"The Philippines is an underserved market with huge demand for data center services...we believe that this joint venture will be well-positioned to become the leader in the data center space in the Philippines," Globe president and CEO Ernest Cu said.
Globe said it has been operating data centers since 2001 through its unit Innove Communications Inc.