Takeover Bid over Chindata Intensify

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.

china cdc wmedia convention
china cdc wmedia convention

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.

 

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