US investment firm Bain Capital is inching closer to a deal to acquire the remaining stake in Chindata Group to take it private, reported Bloomberg, citing sources.
The talks between Bain and the special board committee of Chindata are now focused on reaching an agreement on the valuation of the data centre business, the sources said.
Based in Beijing, Chindata is engaged in operating carrier-neutral data centres in markets such as China, India, and Malaysia.
As per the report, the special board committee is reviewing the investment firm’s $8 (57.6 yuan) per American depositary share (ADS) offer, which was made in June.
Bain has already obtained finance to acquire a minority shareholder’s stake, and a deal could be struck as soon as this month, the sources added.
A non-binding offer of $9.2 in cash per ADS made earlier by China Merchants Capital Holdings International valued the US-listed Chindata at around $3.4bn.
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However, that offer is not likely to be accepted, the sources said, adding that to close a deal, Bain may raise the price of the bid.
Following China Merchants Capital’s offer, Chindata said Bain will not sell its stake in the company, Reuters reported last month.
Currently, Bain owns about 42.2% of Chindata and 87.4% of the total voting power in the company.
In 2019, Bain acquired Chindata from Wangsu Science & Technology and combined it with one of its portfolio companies, Bridge Data Centers.
Chindata raised $621m through its US initial public offering (IPO) in 2020.