Nasdaq-listed VNET Group, Inc., a leading carrier- and cloud-neutral Internet data centre services provider in China, has said that it recently received an unsolicited preliminary non-binding proposal letter from The Hina Group and Industrial Bank Co., Ltd., Shanghai Branch, proposing to acquire all of the outstanding ordinary shares of the Company for US$8.00 in cash per American depositary share, or approximately US$1.3333 per ordinary share.
“The Board cautions the Company’s shareholders and others considering trading the Company’s securities that the Board has just received the Proposal and has not made any decisions with respect to the Proposal,” the company said in a disclosure. There can be no assurance that any definitive offer will be made, that any agreement will be executed or that the proposed transaction or any other transaction will be approved or consummated, the disclosure added.
Private equity group Blackstone is currently the second-largest institutional shareholder in VNET, behind London-based TT International Asset Management, operates in more than 30 cities throughout China, servicing a diversified and loyal base of over 6,000 hosting and related enterprise customers that span numerous industries ranging from internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.
In December 2021, VNET signed a master joint venture investment agreement with a sovereign wealth fund to pursue development and investment opportunities in multiple build-to-suit hyperscale data centre projects in China.
This development comes in the backdrop of VNET announcing a 28.2 per cent jump in revenue to RMB 6.19 billion ($971.3 million) in 2021, with adjusted EBITDA surging 32.4 per cent to RMB 1.75 billion ($275.2 million).
“For the full year of 2021, we met our annual guidance for cabinet delivery despite macro uncertainties and external challenges,” said chief financial officer Tim Chen. “Looking ahead, we will continue to explore various financing solutions to enhance the health of our balance sheet, capitalise on rapid growth in IDC demand, and generate increasing value for our shareholders.”
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