Nasdaq-listed data center solutions provider Chindata Group said it’ll go private with a US$ 3.16 billion deal with U.S. private equity firm Bain Capital. The move ends the months of uncertainty stemming from intensified takeover attempts by Chinese stated-owned company, China Merchant Group, and its US$ 3.4 billion bid earlier this year.
The deal from Bain Capital values each American depositary share of the company at US$ 8.60, a 43% premium. This is an increase from last month’s offer, in which Bain Capital had said it’ll pay each share at US$ 8. It’s also a 7.5% increase from the initial purchase price when the firms considered a takeover in June.
The private equity firm will pay US$ 4.30 for ordinary shares. Chindata said the go-private deal will be funded through a combination of cash and debt financing by Shanghai Pudong Development Bank. Chindata is expected to close public trading during the fourth quarter of 2023 or early next year.
Bain Capital already has a major stake in Chindata with over 42% of outstanding shares with 87% of the voting power. In 2019, Bain Capital bought Chindata with investments worth US$ 570 million and later merged it with its portfolio firm Bridge Data Centers.
Chindata, based in Beijing, operates carrier-neutral data centers in mainland China, Malaysia, and India. It’s contributing to the growth of the data center market in APAC, which is projected to witness investments of US$ 96.85 billion between 2023 and 2028, according to Research and Markets.