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

CHINDATA Group Holdings said on Thursday (Jul 13) Bain Capital, its largest shareholder, did not intend to sell any of its shares in the Chinese data centre 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 US$9.2 per American Depositary share, representing a deal value of US$3.4 billion.

Data centres and cloud services have seen increased demand due to the widespread adoption of AI technologies.

Bain, which offered to buy Chindata Group for US$8 per share or nearly US$3 billion in June, owns about 87 per cent of total voting power and about 42 per cent 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. REUTERS