Bain Capital Inching Closer to Chindata Takeover With an Offer of Around $3bn

Bain Capital is moving closer toward a potential takeover of data centre operator Chindata Group Houp

Talks between private equity firm Bain and Chindata’s board, which is evaluating an $8 per ADS offer from Bain, are now centred on determining a valuation, according to a Bloomberg report on Sunday, which cited people familiar with the matter. Bain has secured financing to buy out minority shareholders, and a deal could be reached as early as this month

No final decisions have been made, talks are still taking place, and a potential agreement could still be delayed, according to the report.

The news comes after Chindata (CD) received a preliminary non-binding proposal letter from Bain in June for $8 per ADS. In July, an arm of state-owned conglomerate China Merchants Capital made a $3.4 billion takeover offer, or $9.20 per ADS, topping a bid from Bain Capital for the Asian data centre operator.

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China Merchants Capital’s non-binding offer is unlikely to be accepted by Chindata (CD), according to the Bloomberg report. Bain may consider increasing its offer price to get a deal over the finish line.

Bloomberg reported in November that China Merchants was exploring a takeover of Bain-backed Chindata (CD). The news outlet also reported last April that Chindata (CD) had received takeover interest from other firms in the industry.

Source: Seeking Alpha

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