BEIJING, July 8, 2024
/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 the refinancing of the margin loan facility
provided by Bold Ally (Cayman) Limited (the "Bold Ally Loan") to
Mr. Josh Sheng Chen ("Mr. Chen"),
Founder, Co-Chairperson and interim Chief Executive Officer of
VNET. The Bold Ally Loan was procured by Mr. Chen in or around
August 2021 to finance his purchase
of 17,140,898 Class A ordinary shares from another significant
shareholder at the time, and was secured by the ordinary shares
beneficially owned by Mr. Chen in the Company.
With reference to the Amendment No. 8 to the Schedule 13D filing
dated July 8, 2024 filed by Mr. Chen
(the "Schedule 13D Amendment"), Mr. Chen and various entities
wholly owned by him (the "Corporate Obligors") have settled all of
their obligations under the Bold Ally Loan. The settlement was
funded using proceeds generated from the issuance of a promissory
note (the "Note") to Shining Rich Holdings Limited and the existing
cash reserves of Mr. Chen.
As a result of the settlement of the Bold Ally Loan, the
collateral for the Bold Ally Loan has been released in full
pursuant to a deed of undertaking as disclosed in the Schedule 13D
Amendment, and Mr. Chen has restored his beneficial ownership
interest in 33,628,926 Class A ordinary shares of the Company, the
ownership of which was previously transferred to Bold Ally (Cayman)
Limited.
The Note is secured by 68,373,133 Class A ordinary shares and
27,757,992 Class B ordinary shares beneficially owned by Mr. Chen
and the Corporate Obligors, representing in the aggregate
approximately 6.00% of the issued
and outstanding share capital and 18.41% of the total voting power in the
Company as of the date of the Schedule 13D Amendment.
Mr. Chen and the Corporate Obligors have also made various
undertakings with respect to the shares of the Company. These
undertakings include procuring the Company not to issue or grant,
in any financial year, equity securities (including rights to
acquire shares) representing 5% or more of the total issued and
outstanding capital of the Company (on a fully-diluted basis) to
any person, including Mr. Chen and the Corporate Obligors
themselves, subject to exceptions. Details of such undertakings are
set forth in the Schedule 13D Amendment.
Considering the voting power owned by Mr. Chen, his veto rights
over certain corporate actions through his beneficial ownership of
60,000 class C ordinary shares and his executive powers as
co-Chairperson and interim Chief Executive Officer of the Company,
Mr. Chen holds significant power to direct or influence the
management and policies of the Company as a controlling person.
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 7,500 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.
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 beliefs and expectations on the future performance of
VNET, 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 liquidity
conditions; 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 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
View original
content:https://www.prnewswire.com/news-releases/vnet-announces-certain-updates-regarding-the-refinancing-of-the-founders-personal-loan-302190783.html
SOURCE VNET Group, Inc.