Asiaphos (SGX:5WV) signed a non-binding term sheet to acquire a 51% controlling stake in DC Alliance, which owns a Tier III certified data center in Western Australia for AU$7.7 million, according to a Monday filing with the Singapore Exchange.
The data center, which has the potential for an additional 6MW of IT load capacity, is operated by DC's subsidiary, Pier DC.
The acquisition will depend on satisfactory due diligence and successful fundraising, along with shareholder approval.
The term sheet also grants AsiaPhos a five-year right of first refusal for any future funding rounds by DC Alliance founder Roy Wong involving AI or robotics-related businesses.
Shares of the phosphate mining and clean energy company surged nearly 13% in Monday trading.