Singtel's Data-Center Deal Likely Boosts Growth Without Weighing on Dividends -- Market Talk

Dow Jones16:06

0806 GMT - Singtel raising its stake in a global data-center provider significantly boosts its data-center growth trajectory without affecting its dividends, says DBS Group Research's Sachin Mittal in a note. The deal implies an enterprise value of S$13.8 billion, which translates to a forward enterprise-value-to-Ebitda ratio in the high teens for ST Telemedia Global Data Centres, which is reasonable for a high-growth data-center company, the analyst says. The deal could boost Singtel's earnings in the next two to three years as the data-center provider is projected to more than double Ebitda in the next few years, he adds. Singtel's dividends are unlikely to be unaffected as the transaction should be equity-accounted, says Mittal. DBS maintains a buy rating and S$5.71 target price on Singtel. Shares fall 0.2% to S$4.85. (megan.cheah@wsj.com)

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February 04, 2026 03:06 ET (08:06 GMT)

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