CD - Chindata to go private on $3.16B equity value after Bain Capital raises bid

2023-08-11 17:39:50 ET

Data center operator Chindata Group ( NASDAQ: CD ) Friday said signed an agreement to go private and merge with BCPE Chivalry Bidco's, representing Bain Capital, subsidiary in a transaction implying an equity value of $3.16B.

Bain Capital, which already owns about 42% of the company, will acquire all of the shares, including ADS, not already owned by Bain shareholders, for US$4.30 in cash per Class A or Class B ordinary share, or US$8.60 in cash per ADS.

This represents an increase of 30 cents per share and 60 cents per ADS from Bain Capital's earlier bid .

The offer price also represents a premium of about 42.6% to the closing price of the ADSs on June 5, being the last trading day before it received Bain's take-private proposal, said the target company.

The proposal also comes at a time when Chindata shows compelling growth prospects as demand for data storage and computing powers soars along with the rise of cloud services and artificial intelligence, as noted by SA Analyst Bamboo Works .

"By taking Chindata private, Bain could focus on further nurturing the company - which already looks quite well-run compared with its local peers - without worrying about shareholder demands or listed company requirements," said Bamboo Works in a recent analysis .

Chindata said the deal was expected to close during the fourth quarter of 2023 or the first quarter of 2024.

• CD -0.7% after hours to $8.05.
• Source: Press Release

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