Buyout firm Bain Capital is to take full control of Chindata Group Holdings after agreeing a deal valued at around $3.15bn to take the Beijing-based data centre business private, according to a statement released by the private investment fund.
Under the terms of the transaction Bain, together with a number of existing and new investors, will pay $4.30 per ordinary stock and $8.60 per American depositary share to acquire all of the outstanding shares of the company.
The purchase price represents a premium of 42.6% to the closing price on the last trading day prior to the initial indication of interest by Bain Capital on 6 June and a premium of 48.7% to the volume-weighted average price during the last 30 trading days prior to the initial indication of interest. The offer also represents a 7.5% increase on Bain’s initial offer to acquire the business.
Chindata Group was created through the merger of two Bain Capital-owned data centre platforms: China-based ChinData and Asia emerging market-focused Bridge Data Centres.
In 2017, Bain Capital launched Bridge Data Centres, which operates across Southeast Asia and India. In April 2019, Bain Capital acquired Chindata. Immediately thereafter, Bain Capital merged the two entities to form a pan-Asian operation.
Since its combination and subsequent IPO in 2020, the business has achieved strong growth. According to the latest earning release for Q1 2023, total data center utilised capacity reached 537MW and quarterly revenue was RMB1.44 billion.
“We believe taking Chindata Group private is the best way to provide attractive returns to existing public shareholders and secure the long-term success of the company,” said Jonathan Zhu, partner and co-head of Asia private equity for Bain Capital in the statement.
