The deal with DigitalBridge entails the immediate divestment by TIME of 49% of the ordinary shares and 100% of the irredeemable convertible preference shares in AIMS Data Centre Holding Sdn Bhd, as well as 21% of the ordinary shares in AIMS Data Centre (Thailand) Ltd.
Florida-based DigitalBridge is one of the world’s leading owners and operators of digital infrastructure assets. AIMS’ data centres currently include its flagship facility in downtown Kuala Lumpur, a purpose-built site in Cyberjaya and a new data centre in downtown Bangkok.
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. It will receive approximately RM2 billion from its divestments.
The transaction is expected to close by the end of Q2 2023, subject to certain conditions precedent (including TIME shareholder approval) being satisfied.
TIME commander-in-chief Afzal Abdul Rahim said this strategic partnership allows it to crystallise substantial value from the investment made in AIMS over the years.
“Proceeds from the transaction of approximately RM2 billion will partly be used to pay a special dividend of up to RM1 billion to our shareholders, and the balance will be reinvested into the group to further grow shareholder value,” he said in a statement.
According to its filing with Bursa Malaysia today, TIME said its board intends to declare an indicative special dividend to its shareholders of approximately RM1 billion, which translates into an indicative dividend per share of 54 sen based on the 1.83 billion TIME shares issued.
At 2.45pm, TIME shares had risen 25 sen or 5.4% to RM4.90.
Upon completion of the proposed transactions, TIME is expected to record an estimated pro forma net gain of RM2.5 billion and will no longer consolidate the financial performance of AIMS and AIMS TH moving forward.
However, TIME will still be able participate in any potential positive development of AIMS and AIMS TH through its remaining shareholding, the filing said.
Both parties envisage a rapid and tactical expansion of data centre facilities across primary and secondary cities in Asean and beyond.
The plans will centre on AIMS as the primary platform for expansion, whilst making Malaysia a core hub and gateway for greater connectivity in the region.
The partnership stems from TIME’s strategic review of its data centre business in late-2021, with the group finding there are significant opportunities in underserved markets across Asia. TIME felt that this ambition would be best realised with a strategic partner with 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,” said Afzal.
DigitalBridge MD and head of Asia Justin Chang said DigitalBridge’s expertise in investing, building, and operating data centres to the highest standards aligns perfectly with AIMS’ next stage of development.
“TIME has an impressive track record of building connectivity linked businesses across the Asean region and is the ideal partner for this endeavour,” he said.
He added AIMS is a leading operator in the region poised for significant growth, with a strong management team, a robust development pipeline and considerable expansion capacity.