Asian consortium in talks to buy stake in UK data centre operator Global Switch

Data centre operator Global Switch, owned by Britain’s billionaire Reuben brothers, said on Sunday its parent company was in talks with a consortium of Asian investors about a potential sale of a stake in the business.

The Sunday Times reported the brothers were in advanced talks for a 5 billion pound ($6.7 billion) deal to sell half of the company to a consortium led by Chinese firm Daily Tech and which includes a private financial subsidiary of state-owned Aviation Industry Corporation of China.

The newspaper said senior British politicians, including former foreign secretary Malcolm Rifkind, had raised concerns about security risks if the sale went ahead.

Global Switch develops and operates data centres in Europe and Asia. The centres house IT servers for clients including government organisations, financial institutions and telecoms firms.

Global Switch said in a statement its parent company, Aldersgate Investments Limited, was in talks with “a consortium of high quality private sector Asian investors about a potential investment”.

“If the investment is concluded by the consortium, there will be no change to the management or strategic direction of Global Switch. Aldersgate Investments Limited and the consortium will exercise joint control of Global Switch,” the company said.

On Sunday, British Prime Minister Theresa May said she wanted her security advisers to help review a delayed nuclear power investment from China.

Global Switch said there were no security issues relating to its possible transaction.

“This is a potential financial investment into a real estate company. The investors will have no involvement in the operations or management of the company,” it said.

“Global Switch has no access to customer data whatsoever and only provides space, power, cooling and physical security. Global Switch provides no IT services for its customers.”

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.