Globe (PSE:GLO), a leading digital platform in the Philippines, with major interests in telecommunications, financial technology, digital marketing solutions, venture capital funding for startups, entertainment, and virtual healthcare, has signed an exclusivity agreement with Singapore-headquartered ST Telemedia Global Data Centres (“STT GDC”), one of the fastest-growing data center providers globally, on the carve-out of Globe’s data center business in Philippines (“Globe DC”).
Under the exclusivity agreement, Globe and STT GDC will enter into discussions and aim to sign definitive agreements related to Globe DC.
Globe, through its wholly-owned subsidiary Innove Communications, Inc., has been operating data centers since 2001, and has since expanded its portfolio nationwide, serving both its internal needs and corporate clients across various industries. Globe data centers are globally competitive, advanced, standard-compliant and highly secure facilities offering world-class data, network, telecommunication and IT services ranging from carrier-neutral colocation space, managed security, mission-critical applications and cloud solutions. The portfolio is expected to grow as Globe continues to expand its footprint in anticipation of large demand requirements in the future. Globe data center facilities have midterm expansion potential of up to 45MW power. Globe believes a partnership with STT GDC is the next important step that will accelerate Globe’s data center growth strategy and market share position in the Philippines, enabling them to take advantage of the structural growth trends in the region and creating value for key stakeholders in the longer term.
The transaction is expected to take the form of a joint venture, in which Globe will remain a significant shareholder. The investment into Globe DC is fully consistent with Globe’s long-term strategy of its data center business through partnering with a leading data center operator to create a top tier data center business in the Philippines and regionally. More importantly, this transaction reinforces Globe’s efforts to innovate into a leading digital solutions group that provides connectivity and solutions to power and enable a robust digital ecosystem for the Filipino.
“The Philippines is strategically positioned to capture the booming global demand for data centers. Our strong track record and extensive customer reach, together with STT GDC’s deep operational expertise, position us well to be a leading data center company in the Philippines.” Ernest L. Cu, President and CEO of Globe commented. “Our potential joint venture with STT GDC will therefore be a significant multi-year growth driver for Globe and will further drive our transformation into a digital platform, this time into B2B space, after success of B2C with GCash.”
Discussions on such opportunities are ongoing and there is no certainty that such discussions will lead to definitive transactions. Globe will make relevant announcements in accordance with the rules of the Philippines Stock Exchange as and when appropriate.
