China's Chindata Group climbs on report of takeover talks

Chindata group

22/04/2022 11:31

** U.S.-listed shares of Chinese data center solutions provider
 CD.O  rise 9.8% to $4.81 premarket
    ** The company, which is backed by U.S. private equity firm
Bain Capital, has received preliminary takeover interest from
other firms in the industry, Bloomberg News reports https://bloom.bg/3EJSuT2,
 citing people familiar with the matter
    ** Shanghai-based high-performance data centre operator GDS
Holdings  9698.HK  is mulling a combination with CD, while
rivals like EdgeConneX, backed by private equity firm EQT AB,
could also weigh potential bids - report
    ** The report said CD's board has not considered any
proposal yet and the buyout firm could decide to delay any deal
until CD's stock price bounces back
    ** CD's shares have fallen 73% since their Sept 2020 U.S.
debut, partly due to a sweeping Chinese regulatory crackdown on
the tech industry and a dispute between Beijing and Washington
over audit rules
    ** As of last close, CD had 365.23 mln shares outstanding
worth $1.60 bln - Refinitiv data
    ** All nine brokerages covering the stock rate it "buy" or
higher; their median PT is $10 
    ** As of last close, stock down 33.5% YTD

 (Reporting by Devik Jain in Bengaluru)
 ((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 6182 2062; ;))