GDS Holdings Shareholder Sells 5.7 million ADSs; Stock Rises

CyrusOne will continue to hold 2.3 million ADSs, which are subject to a six-month lockup, the company said.
Binwei WangApr 13,2019,02:30

GDS Holdings Limited (NASDAQ: GDS),a leading developer and operator of high-performance data centers in China. Its 5.7 million American depositary shares was sold by CyrusOne Inc. today. CyrusOne will continue to hold 2.3 million ADSs. Based on the GDS closing price yesterday, total valued reached $90 million, with the remaining shares being subject to a six-month lock up. The commercial agreement between CyrusOne and GDS will remain in place. And CyrusOne’s president and chief executive officer, Gary Wojtaszek remains a member of the GDS Board of Directors.

The transaction is expected to settle on April 16, 2019.

Wojtaszek said, “This transaction replaces a meaningful portion of our equity capital requirements for the year, with the proceeds being deployed to fund attractive, profitable growth opportunities. As two of the fastest-growing data center companies, we look forward to continuing to work together to capitalize on the strong underlying secular demand trends and meet the needs of our customers in the two biggest economies in the world.”

The shares of GDS rose 2.94 percent to $40.61 per share in trading in New York today.

GDS is a Beijing-based company, its facilities are strategically located in China’s primary economic hubs where demand for high-performance data center services is concentrated. The company’s data centers have large net floor area, high power capacity, density and efficiency, and multiple redundancy across all critical systems.