On Monday, GDS surged nearly 33.4% as reports surfaced that Hillhouse Capital, Boyu Capital, and DH Capital are in deep negotiations regarding investing in GDS's overseas data center business. In response, GDS later announced on the Hong Kong Stock Exchange that the company is indeed in discussions with several private equity investors regarding potential transactions involving its international business, but no agreements have been signed yet.
According to sources familiar with the matter, the total investment for this deal is estimated to be between $500 million to $600 million. The agreement may be reached as early as in the coming weeks, but no final decision has been made at this point. This news drove GDS to surge by nearly 33.4%, reaching $8.55, approaching its intraday high of $9.38 on December 28, 2023.
GDS promptly issued a response following the announcement. According to reports from Yicai, GDS's Hong Kong Stock Exchange announcement stated that the company is aware of media reports suggesting potential transactions related to its data center assets and operations outside mainland China. The company confirmed that it is in discussions with several private equity investors regarding potential transactions involving its international business. However, as of the date of this announcement, the company has not entered into any final legal agreements for private equity fundraising and cannot confirm whether any transactions will take place, nor the structure of any potential transactions.
Meanwhile, representatives of Hillhouse, Boyu, and DH, long-term investors in GDS, have not responded to requests for comments.
Earlier reports indicated that GDS is planning to expand in Southeast Asia and has been considering selling minority stakes. According to its website, GDS operates dozens of data centers in cities such as Beijing, Guangzhou, Shanghai, and Shenzhen. As part of its overseas expansion, it provides services in third-party data centers in Singapore and is constructing facilities in Malaysia and Indonesia.
Analysts believe that private equity firms traditionally focused on China are increasingly shifting their focus to other regions like Southeast Asia. Last month, Hillhouse acquired InCorp Global, a Singaporean business services provider previously held by private equity firm TA Associates, although the transaction amount was not disclosed.

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Media previously reported that GDS is planning to expand in Southeast Asia and has been considering selling minority stakes, while traditional private equity firms focused on China are increasingly shifting their focus to other regions such as Southeast Asia.

Hillhouse, Boyu, and DHVC to invest in GDS? Stock surges by 33%! Company responds: No agreement signed yet.