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VNET Announces the Completion of US$299 Million Strategic Investment from Shandong Hi-Speed Holdings Group Limited and the Repurchase Right Notification for 0.00% Convertible Senior Notes due 2026
VNETVNET(VNET) Prnewswire·2023-12-28 10:55

Core Viewpoint - VNET Group, Inc. has completed a strategic equity investment totaling US299millionfromSuccessFlowInternationalInvestmentLimitedandChoiceFaithGroupHoldingsLimited,bothaffiliatedwithShandongHi−SpeedHoldingsGroupLimited,enhancingitscapitalstructureandshareholderbase[1][2].InvestmentDetails−ThestrategicinvestmentresultedinSuccessFlowandChoiceFaithacquiring455,296,932and195,127,260newlyissuedClassAordinaryshares,representingapproximately29.5299 million from Success Flow International Investment Limited and Choice Faith Group Holdings Limited, both affiliated with Shandong Hi-Speed Holdings Group Limited, enhancing its capital structure and shareholder base [1][2]. Investment Details - The strategic investment resulted in Success Flow and Choice Faith acquiring 455,296,932 and 195,127,260 newly issued Class A ordinary shares, representing approximately 29.5% and 12.6% of the total issued shares, respectively [2]. - The voting power held by Success Flow and Choice Faith is approximately 25.0% and 10.7%, respectively [2]. - Success Flow is restricted from transferring any Class A ordinary shares acquired in the investment for three years, subject to certain conditions [2]. Convertible Notes Repurchase - The company is notifying holders of its 0.00% Convertible Senior Notes due 2026 about their right to require the company to repurchase their notes for cash on February 1, 2024 [3][5]. - The repurchase price will be 100% of the principal amount plus any accrued and unpaid special interest, with US600 million in aggregate principal amount of the notes outstanding as of December 28, 2023 [5]. - The opportunity to exercise the repurchase right begins on January 2, 2024, and ends on January 30, 2024 [6]. Company Overview - VNET Group, Inc. is a leading carrier- and cloud-neutral internet data center services provider in China, offering hosting, IDC services, cloud services, and business VPN services [9]. - The company operates in over 30 cities in China, serving a diverse customer base of over 7,000 enterprise clients across various industries [9]. Parent Company Overview - Shandong Hi-Speed Holdings Group Limited is a Hong Kong-listed company that serves as an important investment and financing platform, focusing on industrial investment and resource integration [10].