GDS-SW (09698) rose over 3%. As of the time of writing, the stock was up 3.3%, trading at HKD 43.18 with a turnover of HKD 47.1347 million.
On January 13, GDS-SW announced that it had entered into a definitive agreement with DayOne Data Centers Limited, a Singapore-headquartered hyper-scale data center platform in which the company holds a minority equity investment.
Under the agreement, DayOne will repurchase USD 385 million worth of its ordinary shares from GDS.
The repurchase price per share is identical to the price set in DayOne's recently announced new issuance of over USD 2 billion in Series C convertible preferred shares.
This share repurchase will enable GDS to recover approximately 95% of its original investment principal in DayOne, achieving an investment return of nearly 6.5 times.
Based on the new Series C issuance price, GDS's remaining equity stake in DayOne is valued at over USD 2.2 billion, equivalent to USD 11.18 per GDS American Depositary Share (ADS).
GDS currently intends to reallocate the proceeds from the share repurchase to invest in emerging business opportunities within its core operations in China that possess significant return potential.
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