(Bloomberg) — Alternative asset managers Hillhouse Capital, Boyu Capital and CDH Investments are in talks to invest in GDS Holdings’ data center business outside China, people familiar with the matter said. revealed.
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Although no final decisions have been made, a deal with a total investment of $500 million to $600 million could be reached within weeks, the people said, asking not to be identified as the matter is private. stated on the condition. Other investors may also be involved in the deal.
Shanghai-based GDS is expanding in Southeast Asia and is considering selling a minority stake, Bloomberg News reported in February last year.
Representatives for Hillhouse, a long-term investor in GDS, did not respond to requests for comment. Boyu, CDH, and GDS also did not respond to requests for comment.
Read more: GDS announces global data center stake sale worth $400 million
Private equity firms that have traditionally focused on China are increasingly shifting their focus to other regions, such as Southeast Asia. Last month, Hillhouse acquired Singapore-based business services provider Incorp Global from private equity firm TA Associates for an undisclosed amount.
GDS develops and operates dozens of data centers in cities such as Beijing, Guangzhou, Shanghai and Shenzhen, according to the company's website. As part of its overseas expansion, the company has set up a third-party data center to provide services in Singapore and is building facilities in Malaysia and Indonesia.
GDS's US deposit income has fallen 59% over the past 12 months, valuing the company at approximately $1.2 billion. GDS also trades in Hong Kong and is considering a secondary listing in Singapore, Bloomberg previously reported.
The company's Hong Kong shares rose 5% on Monday morning following the Bloomberg report, following a 5.9% rise on Friday.
(Updates stock price movements in the last paragraph.)
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