Tata Communications on Thursday announced a "strategic partnership" in its 17 data centres in India and Singapore with the Singapore Technologies Telemedia, to whom it is selling 74 percent stake in the business for around $630 million.
Tata Communications will continue to hold remaining 26 per cent stake, a company statement said.
The joint venture include Tata Communications' 14 data centres in key cities across India and three in Singapore. The data centres currently service a highly-diversified customer base, including blue chip enterprises in Asia, e-commerce platforms and global multi-national corporations, the statement said.
A regulatory filing by the company stated that the deal includes sale of a 74 per cent stake in the company's 14 data centres in India for Rs.31.1 billion ($462.66 million), and similar stake sale in its three Singapore data centres for Singapore $232.4 million ($168.37 million).
“This new joint venture partnership will now allow us to hone our strategic focus on advanced services within the data centre that enable digital transformation for our customers, in addition to infrastructure services.
"Our new partnership also gives us the opportunity to redeploy capital behind other areas of our business, to further broaden the portfolio of services we can offer to meet our customers’ current and future requirements," said Tata Communications managing director and chief executive, Vinod Kumar.