China Merchants' unit makes $3.4 bln bid for Chindata Group (updated)

Chindata group

10/07/2023 15:07

(Adds shares in paragraph 2, background and details in
paragraphs 3 and 4)
       July 10 (Reuters) - A unit of China's state-owned
conglomerate China Merchants Group has made a $3.4 billion offer
to acquire Chindata Group  CD.O , as the widespread adoption of
AI technologies has boosted data center demand.   
    U.S.-listed shares of the data center operator rose about
13% to $8.14 in early trading.
    The preliminary bid from China Merchants Capital Holdings
follows the offer from Bain Capital  BCSF.N , where the investor
offered to buy Chindata for $2.93 billion, valuing its each
American depositary share (ADS) at $8. 
    China Merchants' offer price of $9.20 represents a premium
of 15% to Bain's offer price.
    

 (Reporting by Nilutpal Timsina and Akash Sriram in Bengaluru;
Editing by Shweta Agarwal)
 ((Nilutpal.Timsina@thomsonreuters.com; +91 86382 04706;))