Chindata Group Holdings

History

2023: Bain Capital buys out Chindata

On August 11, 2023, it became known that the investment company Bain Capital signed an agreement to privatize Chindata Group Holdings, one of China's largest data center (DPC) operators. The transaction amount is approximately $3.2 billion.

In 2019, Bain Capital acquired the specified operator from Wangsu Science & Technology Co. and carried out its merger with Bridge Data Centers. A year later, ChinData conducted an initial public offering (IPO) in the United States and raised about $540 million. As a result, Bain Capital received an approximately 42 percent stake in the data center operator. By August 2023, ChinData operates nearly two dozen data centers that are located in China, Malaysia and Thailand. Computing sites outside the PRC are managed by the Bridge Data Centers subsidiary.

Bain Capital Signs Agreement To Privatise Chindata Group Holdings

Under the terms of the agreement, Bain Capital will pay $4.3 for an ordinary share and $8.6 for an American depository share of the purchased structure. Thus, the total value of the asset will be $3.16 billion. It is noted that the operator ChinData will be absorbed by two divisions owned by the investment company - BCPE Chivalry Bidco Limited and BCPE Chivalry Merger Sub Limited. The merger is scheduled to be completed in the fourth quarter of 2023 or in the first quarter of 2024 after obtaining the required permits from regulators. After the transaction, Chindata will turn into a private structure and leave the exchange.

We believe privatisation of the Chindata Group is the best way to deliver attractive returns to existing public shareholders and support the company's long-term success, "said Jonathan Zhu, partner and co-head of Asian private equity at Bain Capital.[1]

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