BEIJING, Nov. 16,
2023 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET)
("VNET" or the "Company"), a leading carrier- and cloud-neutral
internet data center services provider in China, today announced that Success Flow
International Investment Limited ("Success Flow") and Choice Faith
Group Holdings Limited ("Choice Faith") have entered into an
investment agreement (the "Investment Agreement") with VNET to make
an equity investment in an aggregate amount of US$299 million (the "Proposed Investment") in the
Company. Both Success Flow and Choice Faith are beneficially owned
by Shandong Hi-Speed Holdings Group Limited ("SDHG," 00412.HK), the
shares of which are listed on the Main Board of The Hong Kong Stock
Exchange.
Pursuant to the Investment Agreement, (i) Success Flow will make
an equity investment of US$209.3
million in the Company by subscribing for 455,296,932 newly
issued Class A ordinary shares of the Company and (ii) Choice Faith
will make an equity investment of US$89.7
million in the Company by subscribing for 195,127,260 newly
issued Class A ordinary shares of the Company, both in cash at a
subscription price of US$0.4597 per
Class A ordinary share of the Company, or US$2.7582 per American depositary share ("ADS")
of the Company. Each ADS represents six Class A ordinary shares.
Immediately after the closing of the Proposed Investment, Success
Flow and Choice Faith will hold approximately 29.5% and 12.6% of
the total issued and outstanding shares of the Company (excluding
treasury shares and Class A ordinary shares in the form of ADSs
that are reserved for issuance upon the exercise of share incentive
awards), respectively, and approximately 25.0% and 10.7% of the
voting power, respectively The consummation of the Proposed
Investment is subject to the satisfaction of customary closing
conditions, including, among others, shareholders' approval of
SDHG, and the clearance of PRC anti-monopoly filing. The closing of
the Proposed Investment is expected to occur around the end of 2023
or January 2024. Success Flow agrees
to be restricted from transferring or otherwise disposing of any
Class A ordinary shares of the Company acquired in the Proposed
Investment within three years after the closing, subject to certain
conditions.
Success Flow and Choice Faith also entered into an investor
rights agreement with the Company and a voting and consortium
agreement (the "Voting and Consortium Agreement") with Mr.
Josh Sheng Chen, Founder and
Executive Chairman of the Company and his affiliated investment
vehicles (together with Mr. Josh Sheng
Chen, the "Founder Parties") today, both of which will be
subject to the terms therein and take effect upon the consummation
of the Proposed Investment. Pursuant to the Voting and Consortium
Agreement, Success Flow will be subject to certain voting
arrangements with the Founder Parties when voting at the
shareholders' meetings of the Company for a specified period,
subject to the terms and conditions thereof. The Investment
Agreement, Investor Rights Agreement and Voting and Consortium
Agreement will be filed as exhibits to an amendment to the Schedule
13D of the Founder Parties in due course.
"We are pleased to welcome this strategic investment from SDHG,
which stands as a powerful endorsement of VNET's leading
competitiveness and unique value proposition in the IDC industry,"
said Mr. Josh Sheng Chen. "Their
investment will further strengthen our balance sheet and fuel
innovation as we will cooperatively explore new opportunities in
renewable energies with them going forward. As the digital economy
develops and expands, VNET will remain dedicated to offering
reliable and scalable IDC services, addressing customers' evolving
demands and delivering long-term value to all of our
stakeholders."
About VNET
VNET Group, Inc. is a leading carrier- and cloud-neutral
internet data center services provider in China. VNET provides hosting and related
services, including IDC services, cloud services, and business VPN
services to improve the reliability, security, and speed of its
customers' internet infrastructure. Customers may locate their
servers and equipment in VNET's data centers and connect to
China's internet backbone. VNET
operates in more than 30 cities throughout China, servicing a diversified and loyal base
of over 7,000 hosting and related enterprise customers that span
numerous industries ranging from internet companies to government
entities and blue-chip enterprises to small- to mid-sized
enterprises.
About Shandong Hi-Speed Holdings Group
Limited
As a company listed in HKEX, Shandong Hi-Speed Holdings Group
Limited ("SDHG") is an important overseas investment and financing
as well as emerging industrial holding platform of Shandong
Hi-Speed Group . Adhering to the concept of "conduct compliance
prudentially, develop steadily and healthily" and leveraging on the
unique advantages of Hong Kong
international financial center in terms of market, financing, and
talents, SDHG is committed to becoming an excellent industrial
investment group with a foothold in Hong
Kong, an international perspective and connection between
domestic and overseas markets for achieving effective integration
of resources.
Safe Harbor Statement
This announcement contains forward-looking statements. These
forward-looking statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These statements can be identified by terminology such as
"will," "expects," "anticipates," "future," "intends," "plans,"
"target," "believes," "estimates" and similar statements. Among
other things, quotations from management in this announcement as
well as VNET's strategic and operational plans contain
forward-looking statements. VNET may also make written or oral
forward-looking statements in its reports filed with, or furnished
to, the U.S. Securities and Exchange Commission, in its annual
reports to shareholders, in press releases and other written
materials and in oral statements made by its officers, directors or
employees to third parties. Statements that are not historical
facts, including statements about VNET's beliefs and expectations,
are forward-looking statements. Forward-looking statements involve
inherent risks and uncertainties. A number of factors could cause
actual results to differ materially from those contained in any
forward-looking statement, including but not limited to the
following: VNET's goals and strategies; VNET's expansion plans; the
expected growth of the data center services market; expectations
regarding demand for, and market acceptance of, VNET's services;
VNET's expectations regarding keeping and strengthening its
relationships with customers; VNET's plans to invest in research
and development to enhance its solution and service offerings; and
general economic and business conditions in the regions where VNET
provides solutions and services. Further information regarding
these and other risks is included in VNET's reports filed with, or
furnished to, the U.S. Securities and Exchange Commission. All
information provided in this press release and in the attachments
is as of the date of this press release, and VNET undertakes no
duty to update such information, except as required under
applicable law.
Investor Relations Contact:
Xinyuan Liu
Tel: +86 10 8456 2121
Email: ir@vnet.com
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SOURCE VNET Group, Inc.