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Chindata to go private in $3.16bn deal with Bain Capital

Written by Thu 17 Aug 2023

Chindata is set to go private in a £2.48 billion ($3.16 billion) deal with investor Bain Capital.

The merger agreement will take the Chinese data centre operator private along with two Bain-owned subsidiaries, BCPE Chivalry Bidco Limited and BCPE Chivalry Merger Sub Limited.

The company’s board of directors unanimously agreed to this merger upon the recommendation of a Special Committee of independent directors.

Bain Capital currently holds 87% of voting power and 42% of outstanding shares. Bain made an all-cash offer, valuing each American depository share of the company at £6.77 ($8.60).

This figure is a 7.5% increase from the private equity firm’s proposal in June. The company experienced a 3% increase in US-listed shares last Friday.

The merger is expected to close in Q4 2023 or Q1 2024, subject to customary closing conditions. It will be funded through cash contributions from sponsors or affiliates, debt financing, and equity rollover.

Earlier this year, Chindata received a letter from Bain shareholders stating it did not intend to sell any shares in the company after it received a bid from China Merchants Capital for £2.6 billion ($3.4 billion), which is higher than the new deal of £2.48 billion ($3.16 billion).

Bain took Chindata public on the NASDAQ in September 2020.

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Written by Thu 17 Aug 2023

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