(Bloomberg) — Time Dotcom Bhd., a Malaysian telecommunications provider, is considering strategic options for its data centers business, according to people familiar with the matter.
The company is working with financial advisers on a strategic review for Aims Data Centre that may lead to a stake sale, the people said, asking not to be identified because the matter is private. Time could raise about $500 million to $600 million in a deal, the people said.
Potential bidders including industry players and infrastructure funds have expressed preliminary interest in the stake, the people said. The company may keep a minority interest in the data centers, they said.
Considerations are at an early stage and the company could still decide against selling any part of the business, they said. A representative for Time didn’t immediately respond to requests for comment.
Listed on the Malaysian stock exchange since 2001, Time offers fixed-line voice and broadband services to consumers and businesses, as well as enterprise solutions in areas such as cloud and security. Beyond Malaysia, it has stakes in providers in Vietnam and Thailand, according to its latest annual report.
Backed by Malaysia’s sovereign wealth fund Khazanah Nasional Bhd., Time’s shares have dropped about 7% this year, valuing the firm at about $1.8 billion.
Telecommunications companies have been trimming their portfolios including data centers amid increasing investor appetite for digital infrastructure assets. Last year, DigitalBridge Group Inc., a U.S.-based digital infrastructure investment firm, acquired PCCW Ltd.’s data-center business for $750 million.
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