KUALA LUMPUR: TIME dotCom Bhd is selling a big portion of its shares in AIMS Group data centre business to DigitalBridge Group Inc for about RM2 billion.
The divestment is part of Time's partnership with DigitalBridge to accelerate the expansion of AIMS Group data centre business across Asia.
AIMS is Malaysia's leading highly connected, ecosystem-centric data centre and widely regarded as the home of Malaysian Internet.
The partnership entails the immediate divestment by Time of 49 per cent of the ordinary shares and 100 per cent of the irredeemable convertible preference shares in AIMS Data Centre Holding Sdn Bhd, as well as 21 per cent of the ordinary shares in AIMS Data Centre (Thailand) Ltd.
"As part of the strategic partnership, the overall AIMS business is being valued at an enterprise value of RM3.2 billion. This compares to its current book value of RM240 million and represents a significant gain since TIME first acquired AIMS in 2012 for RM119 million," Time said in a statement today.
Time commander-in-chief Afzal Abdul Rahim said the strategic partnership allowed it to crystallise substantial value from the investment it had made in AIMS over the years.
"Proceeds from the transaction of about RM2.0 billion will partly be used to pay a special dividend of up to RM1.0 billion to our shareholders. The balance will be reinvested into the company to further grow shareholder value," he added.
Following a strategic review of its data centre business in late-2021, Time found that there were significant opportunities in underserved markets across Asia.
Time felt that the ambition would be best realised with a strategic partner that has a global lens.
"We believe that DigitalBridge is the right partner as they are committed to building on AIMS' heritage and capitalise on its strengths. We see this as a true partnership that will allow us to tap on their global experience in other markets," Afzal said.
Time said the partnership was premised on bringing together a unique combination of two entities with distinctly different backgrounds.
Both parties envisage a rapid and tactical expansion of data centre facilities across primary and secondary cities in Asean and beyond with a focus on providing best-in-class services to multinationals, large enterprises, content providers, internet infrastructure providers and financial institutions.
According to Time, the plans would centre on AIMS as the primary platform for expansion, while making Malaysia a core hub and gateway for greater connectivity in the region.
The transaction is expected to close by the end of the second quarter of 2023, subject to certain conditions precedent including shareholder approval being satisfied.