Chindata says largest shareholder Bain will not sell stake after rival bid (updated)

Chindata group

13/07/2023 11:22

(Adds background in paragraph 2 to 4, comment from Bain in
paragraph 5)
       July 13 (Reuters) - Chindata Group Holdings said on
Thursday Bain Capital, its largest shareholder, did not intend
to sell any of its shares in the Chinese data center operator
after a rival bid from China Merchants Capital (CMC).
    The unit of state-owned conglomerate China Merchants Group
offered to acquire Chindata Group for $9.2 per American
Depositary share, representing a deal value of $3.4 billion.
    Data centers and cloud services have seen increased demand
due to the widespread adoption of AI technologies.
    Bain, which offered to buy Chindata Group for $8 per share
or nearly $3 billion in June, owns about 87% of total voting
power and about 42% of outstanding shares in the company.
    "We remain fully committed to pursuing the acquisition
contemplated by our proposal," Bain said in a letter to the
firm.
    
    

 (Reporting by Akash Sriram in Bengaluru; Editing by Shinjini
Ganguli)
 ((Akash.Sriram@thomsonreuters.com; @HoodieOnVeshti on Twitter;
+91-74116-87774;))