The takeover battle of the Nasdaq-listed data center solutions provider Chindata Group Holdings is intensifying after Bain Capital reportedly rejected a US$ 3.4 billion offer from Chinese state-owned company, China Merchant Group. The showdown between Bain Capital and China Merchant is impacting shares of Chindata, which climbed to US$ 8 per share at last Friday’s closing.
Bain Capital already has a major stake in Chindata with a 42% stake and has unveiled plans to privatize the company by securing 100% of the company’s shares. Last month, the U.S. private equity firm submitted a preliminary proposal to U.S. financial authorities to acquire stocks issued by Chindata Group, setting a value of US$ 8 per depository share, a 33% premium.
Another preliminary proposal was submitted by China Merchant Group to acquire Chindata. According to investment circles, China Merchant is aiming to bid at a higher value of US$ 9.2 for each depository share via an investment of US$ 3.4 billion.
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.