CD - Bain Capital inching closer to Chindata takeover - report

2023-08-06 22:24:12 ET

Bain Capital is moving closer toward a potential takeover of data center operator Chindata Group Houp ( NASDAQ: CD ).

Talks between private equity firm Bain and Chindata's board, which is evaluating an $8 per ADS offer from Bain, are now centered on determining a valuation, according to a Bloomberg report on Sunday, which cited people familiar with the matter. Bain has  secured financing to buy out minority shareholders, and a deal could be reached as early as this month.

No final decisions have been made, talks are still taking place, and a potential agreement could still be delayed, according to the report.

The news comes after Chindata ( CD ) received a preliminary non-binding proposal letter from Bain in June for $8 per ADS. In July,  an arm of state owned conglomerate China Merchants Capital made a $3.4 billion takeover offer, or $9.20 per ADS, topping a bid from Bain Capital for the Asian data center operator.

China Merchants Capital's non-binding offer is unlikely to be accepted by Chindata ( CD ), according to the Bloomberg report. Bain may consider increasing its offer price to get a deal over the finish line.

Bloomberg reported in November that China Merchants was exploring a takeover of Bain-backed Chindata ( CD ). The news outlet also reported last April that Chindata ( CD ) had received takeover interest from other firms in the industry.

Chindata ( CD ) is scheduled to report Q2 results on Aug. 31.

More on Chindata

• Chindata announces receipt of 'Take Private' proposal
• Hot But Undervalued Chindata Attracts Owner-Led Buyout Bid
• Chindata Set To Ride AI-Powered Explosion In Demand For Data Storage, Processing

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