Warburg said to co-lead pursuit of Global Switch with SC Capital Partners: sources
The consortium has been in talks with other potential investors to join them
[LONDON] Private equity firm Warburg Pincus has joined SC Capital Partners in pursuing a potential acquisition of data centre operator Global Switch Holdings, people with knowledge of the matter said.
The SC Capital-Warburg Pincus consortium has been in talks with other potential investors to join them, said the people, who asked not to be identified as the information is private. Singapore-based SC Capital is working with Goldman Sachs Group on the possible Global Switch offer, and has lined up about US$3 billion in a loan facility, the people said.
Global Switch is working with Morgan Stanley and UBS Group on the potential sale, the people said. An earlier attempt to sell its UK operations was put on hold, the people said. The owners of Global Switch are seeking a deal valued at US$6 billion to US$7 billion including debt, they said.
Deliberations are ongoing and there is no guarantee they will result in a transaction, the people said.
Global Switch owns and operates data centres across Europe and Asia, including in Amsterdam, Frankfurt, Hong Kong, Paris and Singapore. Its owners, which include Chinese steelmaker Jiangsu Shagang Group and Avic Trust, bought control of the group from British billionaire brothers David and Simon Reuben in a series of transactions starting in 2016.
Founded in 2004, SC Capital is an Asia-Pacific real estate investment firm. It operates in eight markets with total investment amounted to US$6 billion, according to its website. CapitaLand Investment last year bought a 40 per cent stake in SC Capital for S$280 million. CapitaLand said it would also invest at least S$524 million in strategic capital.
Warburg Pincus has been investing in data centres in Asia since 2017, including Princeton Digital, in which Stonepeak Partners last month agreed to chip in US$1.3 billion.
Representatives for Global Switch, Goldman Sachs, Morgan Stanley, SC Capital, Warburg Pincus and UBS declined to comment. A representative for Shagang Group did not respond to requests for comment. BLOOMBERG
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