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
For further details see:
Bain Capital inching closer to Chindata takeover - report