Chindata says largest shareholder Bain will not sell stake after rival bid

(Reuters) - Chindata Group Holdings said on Thursday Bain Capital, its largest shareholder, did not intend to sell any of its shares in the Chinese data center operator after a rival bid from China Merchants Capital (CMC).

The unit of state-owned conglomerate China Merchants Group offered to acquire Chindata Group for $9.2 per American Depositary share, representing a deal value of $3.4 billion.

Data centers and cloud services have seen increased demand due to the widespread adoption of AI technologies.

Bain, which offered to buy Chindata Group for $8 per share or nearly $3 billion in June, owns about 87% of total voting power and about 42% of outstanding shares in the company.

"We remain fully committed to pursuing the acquisition contemplated by our proposal," Bain said in a letter to the firm.

(Reporting by Akash Sriram in Bengaluru; Editing by Shinjini Ganguli)

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