CD - Why Chindata Group Holdings Stock Rocketed 11% Higher Today
2023-06-07 18:09:38 ET
The clock might be ticking fast on Chindata Group Holdings ' (NASDAQ: CD) tenure as a publicly traded entity. The China-based data center operator saw its share price zoom nearly 11% higher on Wednesday following the disclosure that it had received an offer to take it private.
Chindata revealed in a regulatory document filed with the Securities and Exchange Commission (SEC) that it has received a non-binding buyout offer. Its main institutional shareholder, investment firm Bain Capital, has floated a deal under which it would take the tech company private. It has offered $8 per Nasdaq -listed American depositary share (ADS), plus $4 each for the company's foundational A and B shares, in a deal valued at $2.93 billion. That $8 per ADS price represents a 27% premium to the security's closing price Tuesday.
Bain Capital occupies pride of place among Chindata's institutional investors. According to the investment firm, it holds a more than 42% stake in the company.
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Why Chindata Group Holdings Stock Rocketed 11% Higher Today