GDS Holdings (GDS) has entered into definitive agreements with DayOne Data Centers, a Singapore-headquartered hyperscale data center platform in which the company holds a minority equity investment, pursuant to which DayOne will repurchase ordinary shares of DayOne from GDS to the value of $385M. The share repurchase price per ordinary share is the same as the price for DayOne’s recently announced Series C convertible preferred share new issue of over $2.0B. The share repurchase will enable GDS to recycle approximately 95% of its principal invested in DayOne at a nearly 6.5 times multiple of money. The value of GDS’s remaining equity interest in DayOne implied by the Series C new issue price is over $2.2B, equivalent to $11.18 per GDS American Depositary Share. GDS currently intends to reallocate the proceeds of the share repurchase to invest in new business opportunities in its core business in China.
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