March 12, 2024 - Chinese operator GDS has confirmed it is looking to sell a stake in its international operations.
“The company confirms that it has been in discussion with several private equity investors regarding a potential transaction with respect to its international business,” GDS said in an investor update.
“However, as at the date of this announcement, no definitive legal agreements relating to any private equity capital raising have been entered into and there can be no certainty that any transaction will proceed or, if it does, what the structure of such transaction may be.”
Earlier this week reports surfaced that alternative asset managers Hillhouse Capital, Boyu Capital, and CDH Investments are in advanced talks to invest in GDS Holdings Ltd’s data center business outside China.
GDS didn’t confirm which companies it was in discussions with.
GDS, founded in 2006, operates dozens of data centers across Shanghai, Beijing, Shenzhen, Guangzhou, Chengdu, and Hong Kong. The company is also developing facilities in Malaysia at YTL's new campus as well as the Nusajaya Tech Park, both located in the Johor region. It is also developing a campus in Batam, Indonesia, and Singapore.
GDS has been trading in New York since 2016 when it raised about $200 million in an initial public offering. It was listed in Hong Kong in 2020, with GDS raising around HK$14.9 billion ($1.9 billion).
STT GDC is a major investor in the company. Hillhouse is also an existing investor in GDS.
