Singapore Telecommunications (Singtel) has sold a 70 percent stake in its Australian tower network to superannuation fund AustralianSuper for A$1.9 billion ($1.37 billion).
Singtel said it will use the proceeds to fund a 5G rollout and for data centres.
The deal involves the sale of 2,312 mobile network towers and rooftop sites, and values the Australia Tower Network at an enterprise value of A$2.3 billion.
Singtel will be forming a regional data centre platform with an initial focus on countries in the Association of Southeast Asian Nations (ASEAN).
The group signed a memorandum of understanding with Thai power and infrastructure company Gulf Energy to build and develop data centres across the country.
Singtel is also in advanced talks with Telkom Indonesia to explore acquiring and building data centre assets in Indonesia and the region.
“The rise of digital technology and its accelerated adoption on the back of COVID-19 has had major implications for the physical infrastructure that facilitate and support this overwhelming demand for data connectivity we are witnessing,” said Singtel Group Chief Executive Yuen Kuan Moon.