You are here

SinoCloud unit signs letter of intent to buy Internet data centre in Jiangsu, China

A SUBSIDIARY of Singapore-listed SinoCloud Group has entered into a letter of intent to acquire an Internet data centre in Lianyungang, a Chinese city in north-eastern Jiangsu province.

In a regulatory filing on Thursday, it said that its 60 per cent owned subsidiary Guiyang Zhongdian Gaoxin Digital Technologies Limited has inked the pact with the vendor Zhongdian Zhiyun Holdings Limited.

The remaining 40 per cent of Guiyang Zhongdian is owned by Guiyang Gaoxin Big Data Fund Company (Guiyang Fund).

The letter of intent sets out the intentions of Guiyang Zhongdian and the vendor, whereby Guiyang Zhongdian will work with Guiyang Fund to fully acquire two wholly owned units of the vendor.

One of these two target companies owns the land use rights to a 36,000 sq m plot in Lianyungang with a building with 28,000 sq m of gross floor area.

SinoCloud said that its subsidiary Guiyang Zhongdian paid a refundable deposit of 34.95 million yuan (S$7.4 million) to the vendor to facilitate its ongoing discussion of the proposed acquisition. This deposit is secured by a pledge by the vendor on 82.5 per cent stakes in each of the target companies as collateral to Guiyang Zhongdian.

The exclusivity period for their discussions will end after Dec 31.

BT is now on Telegram!

For daily updates on weekdays and specially selected content for the weekend. Subscribe to