GDS raises $505 million

Data center operator and developer GDS Holdings Limited announced that Hillhouse Capital and ST Telemedia Global Data Centres have agreed to purchase, through a private placement, a total of $505 million of newly issued Class A ordinary shares of the Company at a price equivalent to $65 per ADS. According to the announcement, the private placement represents approximately 5.1% of the Company’s total outstanding shares. Hillhouse will subscribe $400 million and STT GDC will subscribe $105 million.

Potential acquisition opportunities

The company announced that, after the investment, Hillhouse’s ownership position in GDS will be approximately 3.9% and STT GDC will be approximately 34.2%. The capital will be used by GDS for its organic data center development, potential acquisition opportunities, and other general corporate purposes. William Huang, Chairman and Chief Executive Officer of GDS said,

“I am very pleased to secure this capital to support our growth at a time when new IT infrastructure development in China is going to a higher level. Furthermore, I am very pleased to have done it in a way which adds value to GDS and strengthens our shareholder base. Hillhouse is one of the most respected investors, and we look forward to working with them over the long term. I also very much appreciate the on-going support from our strategic partner, STT GDC.”