VNET Group (VNET) Announces $250 Million Investment from Blackstone (BX)
- Wall Street rallies, snaps longest weekly losing streak in decades
- 'Always Bet on Michael': Dell (DELL) Stock Soars After Crushing Estimates, Analysts Say Results are Impressive
- Credit Suisse Says Tesla (TSLA) Stock Offers an Attractive Entry Point, Sees Nearly 60% Upside From Here
- Citi Downgrades US Equities to Neutral on Recession Risk
- Elon Musk Says Recession Could Last 12 to 18 Months, But 'Actually a Good Thing'
News and research before you hear about it on CNBC and others. Claim your 1-week free trial to StreetInsider Premium here.
VNET Group, Inc. (Nasdaq: VNET) (“VNET” or the “Company”), a leading carrier- and cloud-neutral Internet data center services provider in China, today announced that funds managed by Blackstone Tactical Opportunities (NYSE: BX) (“Blackstone”), the world’s largest alternative investment firm, have agreed to make an investment in VNET by purchasing US$250 million of convertible notes (the “Notes”). The Notes have a term of five years and carry interest at 2% per annum.
Josh Chen, Founder and Executive Chairman of VNET, said, “Over the last two years, we have accelerated the growth of our data center footprint in high-demand locations across China’s tier-1 cities. Blackstone’s investment provides us with the capital to take advantage of a robust pipeline of attractive development projects that support our hyperscale and enterprise customers. We look forward to building on this partnership with Blackstone.”
Jasvinder Khaira, a Senior Managing Director in the Tactical Opportunities Group of Blackstone, said, “Under the leadership of Josh and the management team, VNET has become one of the top data center operators in China with a strong operating track record. Data centers and the ongoing migration to the cloud are two of Blackstone’s highest conviction themes globally and we believe VNET plays an important role in the buildout of China’s digital new infrastructure.”
The Notes are convertible into the Company’s American depositary shares (“ADSs”), each representing six Class A ordinary shares, at US$11.00 per ADS, representing a premium of 35% to the latest closing price of US$8.14 per ADS. The transaction is subject to customary closing conditions and the closing is expected to take place in early February.
The Notes have been offered in offshore transactions outside the US pursuant under Regulation S of the Securities Act of 1933, as amended (the “Securities Act”). The Notes, any ADSs deliverable upon conversion of the Notes and the Class A ordinary shares represented thereby have not been registered under the Securities Act or the securities laws of any other place and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any securities, nor shall there be a sale of the securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- GCM Grosvenor (GCMG) Files $350M Mixed Shelf
- VNET Group (VNET) Tops Q1 EPS by 1c
- American Express Global Business Travel Becomes Publicly Traded Company, Ticker "GBTG"
Create E-mail Alert Related CategoriesCorporate News, Equity Offerings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!