Tata communications said on Thursday that it will sell 74 per cent stake in its data centre business to the Singapore-based ST Telemedia for about $630 million (Rs 4,235 crore at $1 = Rs 67.22) including debt.
Tata Communications provides telecom and data services infrastructure through its network of undersea and terrestrial cables. It has been looking to sell non-core assets to cut debt. The ST Telemedia deal includes sale of a 74 per cent stake in the company's 14 data centres in India for Rs 3,110 crore ($462.66 million), and sale of a similar stake in its three Singapore data centres for 232.4 million Singapore dollars ($168.37 million).
Tata Communications will remain a significant shareholder, holding 26% stake in the businesses whereas the remaining 74% stake will be picked up by Singapore Technologies Telemedia (STT).