(Reuters) – Singapore Telecommunications said on Monday private equity firm KKR will acquire a 20% stake in the firm’s regional data centre business with an investment commitment of up to S$1.1 billion ($806.87 million).

The deal puts the enterprise value of SingTel’s overall regional data centre business at S$5.5 billion ($4.03 billion) and the funds will be used to expand the data centre’s business across Southeast Asian markets, including Singapore, Indonesia and Thailand.

“Robust digital infrastructure…will play a crucial role in enabling Southeast Asia’s flourishing digital economy, and Singapore is well-placed to serve as a central hub for the region,” said David Luboff, partner and head of Asia-Pacific infrastructure at KKR, in a statement.

The transaction is expected to be completed by the fourth quarter of 2023.

($1 = 1.3633 Singapore dollars)

(Reporting by Navya Mittal in Bengaluru; Editing by Muralikumar Anantharaman)

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