A consortium of alternative asset managers including Hillhouse Capital, Boyu Capital and CDH Investments are in advanced talks to acquire a stake in GDS Holdings’s data centre business outside China, according to a report by Bloomberg.
The report cites people familiar with the matter as revealing that agreement on an investment of between $500m and $600m may be announced in the next few weeks. Other investors could also yet join the deal, according to Bloomberg’s sources.
Shares in GDS surged by 18% to HKD7.48 in Hong Kong on Monday on news of the potential investment giving the company a market valuation of about $1.5bn. The company had earlier recorded its biggest intraday gain since November 2022, with its American depositary receipts gaining as much as 19% in pre-market US trading on Monday.
GDS, which develops and operates dozens of data centres in Chinese cities including Beijing, Guangzhou, Shanghai and Shenzhen, has expanded to provide services at a third-party data centre in Singapore and is also building facilities in Malaysia and Indonesia.
