VNET Slashes Expansion Plans as Private Equity Buyout Remains in Play

The smallest of China’s three private data center operators by market value cut its 2022 plans for new cabinet installations by 30%, citing delayed customer demand Key Takeaways: VNET has slashed its plans for new cabinet installations this year by 30% and lowered its revenue outlook by a more modest 2.6% The company has hired Citigroup to advise it on a buyout offer led by Hina Group from April this year By Doug Young One has to wonder what Samuel Shen, CEO of data center operator VNET Group Inc. (VNET.US),…

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Private Equity Buyers Swirl Around VNET. But Will They Find Any Value?

MBK Partners and several other private equity firms are weighing bids for the least-respected of China’s three independent data center operators, according to a media report Key Takeaways: Korea’s MBK Partners is reportedly weighing a bid for VNET Group, three months after the data center operator received an unsolicited offer from another private equity firm VNET’s shares have stagnated since it received an original April buyout offer from Hina, indicating investors believe a deal for the company is unlikely By Doug Young VNET Group Inc.’s (VNET.US) days as an independent…

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FAST NEWS: Data Center Operator GDS Loss Widens in First Quarter

The latest: Independent data center operator GDS Holdings Ltd. (GDS.US; 9698.HK) reported its revenue rose 31.5% to 2.24 billion yuan ($354 million) in the first quarter of the year, as its net loss widened 33.7% to 373 million yuan, according to an announcement on Thursday. Looking up: The company continued to expand its business during the period, with its area in service increasing 36.6% to 492,000 square meters, and area utilized by customers increasing 32.2% to 332,000 square meters year-on-year. Take Note: The company’s cost of sales increased by 30% to 1.7 billion yuan and interest…

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Chindata Potentially Up for Sale as M&A Heats Up in China Data Centers

Chinese rival GDS and U.S. peer EdgeConneX are reportedly considering bids for the smallest of China’s three independent data center operators Key Takeaways: Data center operators GDS and EdgeConneX have reportedly expressed interest in making bids for Chindata Chindata’s control by U.S. private equity giant Bain and the recent departure of its founder may make it ripe for such a buyout By Doug Young    After a turbulent year that saw their stocks lose more than half their value, China’s small field of independent data center operators has suddenly become…

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VNET Finally Gets Some Respect from Unsolicited Suitor

Private equity group offers to buy all of the data center operator’s American depositary shares for nearly a 50% premium over their previous close Key Takeaways: VNET has received an unsolicited buyout offer that is 50% higher than its previous stock price, sparking a 30% surge in its shares Company is the relative laggard among China’s three major independent data center operators despite its status as the oldest of the group By Doug Young VNET Group Inc. (VNET.US), the least-appreciated of China’s three major independent data center operators, is finally…

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FAST NEWS: VNET Gets Lift From $250 Million Blackstone Investment

The latest: Data center operator VNET Group Inc. (VNET.US) announced last Friday that a unit of asset management giant Blackstone (BX.US) purchased $250 million worth of its convertible notes. When the notes mature in five years, the Blackstone unit can choose to convert the amount to VNET shares at a conversion price of $11, representing a 35% premium to their last closing price before the announcement. Looking Up: VNET had about $600 million in cash and cash equivalents at the end of last September, meaning the new infusion will boost…

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Chindata Learns Investor Relations Lesson After Keeping CEO Departure a Mystery

Shares in the datacenter operator plunged by a third after it announced the sudden departure of its top executive without explanation Key takeaways: •      Last Friday, Chindata abruptly announced founder Jing Ju had resigned as CEO without saying why, sparking a massive selloff in its stock •      The data center operator hosted a conference call several days later to explain Ju’s departure was because of disagreement on strategy By Warren Yang Bad communication with investors can cost a company hundreds of millions of dollars in market value. Data center operator…

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21Vianet Looks for New Chapter With Name Change

Shareholders approve VNET Group as company’s new name, marking latest adjustment in year of change for data center laggard Key takeaways 21Vianet’s shareholders have approved changing its name to VNET Group Move marks the latest change for the company, following arrival of new CFO in April and recent departure of its COO By Doug Young With all the turbulence in U.S.-China relations, 2021 could well go down as the year of the name change for U.S.-listed Chinese companies. Data center stalwart 21Vianet Group Inc. (VNET.US) has become the latest Chinese…

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Government Environmental Priorities Put the Heat on Datacenter Operators

Recently-listed Chinadata looks most advanced among China’s top three independent operators in heeding calls to reduce carbon emissions Key Takeaways GDS Holdings remains the market leader among China’s major independent datacenter operators Chinadata could be best positioned to respond government carbon-reduction demands that could radically alter land-use and operating-efficiency strategies By Eric Auchard A major shift is shaping up in the real-world land grab by China’s major datacenter operators. While they may seem techy, datacenter operators have much in common with property developers: Their strategy boils down to buying up…

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