China data centres get handy M&A jolt from Beijing

Chindata group

26/04/2022 03:50

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Robyn Mak
    HONG KONG, April 26 (Reuters Breakingviews) - U.S.-listed
Vnet and Chindata’s beaten-up valuations are already seeding
takeover interest. The deals look opportunistic but a new
government-led digital infrastructure push is a game-changer.
That should allow rainmaking rivals to benefit even more from
consolidation.
    Full view will be published shortly.
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    CONTEXT NEWS
     - Chindata, a Chinese data-centre operator, has received
preliminary takeover interest from other firms in the industry,
Bloomberg reported on April 22, citing people familiar with the
matter. Rival GDS is considering a bid to combine with the
company, according to the report.
    - Separately, rival Vnet on April 11 said its board has
received an unsolicited preliminary non-binding offer for the
company. The Hina Group and Industrial Bank Shanghai Branch have
proposed to acquire all of the company's outstanding shares for
$8 per American depository share, valuing Vnet’s equity at $1.18
billion.

 (Editing by Antony Currie and Katrina Hamlin)
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