AsiaPhos Limited has announced its intention to acquire a 51% shareholding in DC Alliance Pte. Ltd., which owns Pier Data Centre in Perth, Australia. This acquisition, valued at approximately S$7m, signifies a strategic pivot for AsiaPhos from commodity trading to digital infrastructure. The move is expected to bolster the company’s revenue through stable infrastructure-backed earnings.
The acquisition is contingent upon several conditions, including satisfactory due diligence and the execution of definitive agreements. AsiaPhos aims to expand the data centre’s existing IT capacity to 8 megawatts, anticipating a significant increase in revenue upon completion. The company is also collaborating with China Mobile International to explore joint opportunities in data centres and artificial intelligence computing services.
Pier Data Centre, a Tier III facility, offers expansion potential, which AsiaPhos plans to leverage. The acquisition aligns with the company’s strategy to diversify its business operations and tap into the growing demand for digital infrastructure. The proposed acquisition is subject to regulatory approvals, including those from the Australian Foreign Investment Review Board and the Singapore Exchange.
AsiaPhos has been granted a 90-day exclusivity period to conduct due diligence and finalise the acquisition terms. During this period, the vendors are restricted from engaging with other potential buyers. The acquisition is expected to position AsiaPhos as a significant player in the data centre sector, with future growth opportunities in digital infrastructure.
