The company is planning a secondary listing in Hong Kong this year.
China's biggest third-party data center brand, GDS Holdings, has announced it has accepted a legally-binding offer to get total equity of a significant data center company located in Shunyi District, Beijing ('BJ14'). The BJ14 is owned by CITIC Private Equity Funds Management (CPE). The total transaction will cost CNY 3.8 billion, plus CNY 500 million depending on the property value.
According to GDS, the target company has a net floor area of around 19,000 square meters and is one of the best facilities in terms of size and quality in Beijing. The 'BJ14' is also well-located, being adjacent to GDS's other facilities, which could create enormous synergy from forming a data center cluster. The current utilization rate for it is about 68%.
GDS has previously cooperated with CPE in acquiring another data center in Beijing. In July 2020, they finished acquiring a data center project with a net floor area of approximately 21,000 sqm. That project is in Tongzhou District ('BJ13'), where the Beijing government is located.
The share price of GDS jumped by 2.57%, closing at USD 79.17 apiece on Tuesday.
The GDS holding provides high performance, carrier-neutral colocation and managed services in China, applying a wholesale and retail business model. The company is operating in 55 facilities in Beijing, Shanghai, Guangzhou and other places.
Established in June 2008, CPE is a leading asset management company in China, specializing in investments in healthcare, consumer services, software and business process outsourcing and technology space, with assets under management over CNY 100 billion. Its portfolio consists of over 100 companies.