Billionaire Lei Zhang’s Hillhouse Investment, Boyu Capital and other investors have agreed to buy a 44% stake in GDS Holdings’ data center assets outside mainland China for $587 million.
Shanghai-based GDS Holdings will retain a 56% stake in Singapore-based GDS International after the deal closes, the company said in a statement this week. The remainder of the company will be owned by Series A convertible preferred stock investors including Boyu Hillhouse, Princeville Capital, Rava Partners and Tekne Capital.
The deal would give GDS International an enterprise value of $2.3 billion, including this year’s expected debt, but the deal will give GDS International an enterprise value of $2.3 billion, including this year’s expected debt, as the company moves to meet surging demand from cloud services giants such as Amazon and Google across Asia. This was realized while strengthening data center development.
GDS International has 330 MW of data center capacity in operation or under construction, with an additional 340 MW for future development across Hong Kong, Singapore, Malaysia and Indonesia.
William Huang, Chairman and CEO of GDS Holdings and Chairman of GDS International, said in a statement: “This landmark capital raise provides dedicated funding to independently develop our international business. This is a major step forward in our strategy to “In a short period of time, we have established market-leading positions in the key hub markets of Hong Kong and Singapore, Johor and Batam. We think there is an opportunity for growth.”
GDS International has secured contracts and reservations for more than 200 megawatts of data center capacity from customers around the world and in China, of which more than 70 megawatts are already generating revenue. The company has raised more than $1 billion in paid-in capital to date, including a cash infusion from parent company GDS Holdings and new capital from Series A investors.
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