(Bloomberg) – Thailand’s biggest banks are considering selling a stake in data center company Supernap Thailand, according to people familiar with the matter, due to growing investor appetite for the industry.
Supernap Thailand shareholders, including Siam Commercial Bank Pcl and Kasikornbank Pcl, are working with a financial adviser to help find a minority investor in the company, the people said. Supernap Thailand, which was a joint venture between some of the country’s biggest companies and US data center giant Switch Inc., could be valued at around $800 million in a deal, the people said.
The sale has attracted preliminary interest from other industry players and investment funds, the people said, asking not to be identified as the matter is private. Switch has no plans to release, one of the people said.
The considerations are preliminary and no final decision has been made, the people said. Representatives of Kasikornbank, Siam Commercial Bank, Supernap Thailand and Switch did not immediately respond to requests for comment.
Supernap Thailand was established in 2016 as a joint venture between some of Thailand’s biggest companies and Las Vegas-based Switch with a $300 million investment in the eastern province of Chonburi. Supernap Thailand’s Tier Four Data Centers, located 110 meters above sea level, are the first hyperscale data centers in Thailand, according to its official presentation on Youtube.
Data center companies have sparked strong interest in takeovers, in part due to the perception that they have stable returns and expectations of continued growth as people become increasingly dependent on technology. In Thailand, True Internet Data Center Co., a unit of Thai conglomerate Charoen Pokphand Group, is seeking to raise about $150 million through the sale of a minority stake, Bloomberg News reported.