GDS Holdings Ltd. (GDS), a developer and operator of high-performance data centers, on Tuesday said it has entered into definitive agreements with DayOne Data Centers Ltd.
Under the agreements, DayOne will repurchase ordinary shares held by GDS for approximately $385 million at a price matching its recently announced Series C convertible preferred share issuance.
The company said the transaction will allow it to recycle about 95% of its principal investment in DayOne at a nearly 6.5x multiple of invested capital.
The company will retain a minority stake valued at more than $2.2 billion based on the Series C pricing.
The company said it plans to reallocate the proceeds toward new investment opportunities with attractive return potential in its core China data center business.
In the pre-market trading, GDS is 3.18% lesser at $42.60 on the Nasdaq.
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