MANILA - Globe Telecom on Monday said it has signed the deal with ST Telemedia Global Data Centers and Ayala Corp for their data center business.
Under the joint venture, Singapore-based data center provider STT GDC and Ayala Corp will subscribe to new shares in Globe's subsidiary KarmanEdge Inc, the company told the stock exchange.
The capital infusion will result in a new valuation "in the range" of $350 million, Globe said.
Aside from the future potential of the venture, Globe said it would recognize a pre-tax gain of around P10.5 billion from partial monetization of its current data center business and the revaluation of the carrying value of its retained interest.
"We are excited about the future of Globe in the data center space," Globe President and CEO Ernest Cu said.
"The transaction not only shows Globe's commitment to delivering value to its shareholders but also proves our ability to generate and unlock value, especially within our core business," he added.
Globe said there is a "significant opportunity" in the data center space in the country.
Its rival PLDT Inc is also building a 100 MW data center in Sta. Rosa, Laguna. Alibaba Cloud has also earlier opened a data center in the Philippines.