Bain Capital to sell China data centre business likely valued at over US$4 billion: sources
[HONG KONG] US investment firm Bain Capital is seeking to sell the China business of data centre operator WinTriX DC Group, in a deal that could value the business at over US$4 billion, two sources with knowledge of the situation said.
Bain Capital has engaged with advisers who have held preliminary conversations with potential buyers in recent months, said the sources, declining to be named as the information was not public.
The China business of WinTriX, formerly known as Chindata Group Holdings, has estimated 2025 earnings before interest, taxes, depreciation, and amortisation (Ebitda) of close to four billion yuan, they said.
Bain Capital declined to comment. The data centre operator did not respond to a Reuters request for comment.
The potential deal comes nearly two years after Bain Capital took Nasdaq-listed Chindata private in a US$3.16 billion deal.
Bain Capital first acquired Chinese data centre operator Chindata in 2019 and merged it with South-east Asia data centre operator Bridge Data Centres in the same year. The listed entity was a combination of both.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Since the take-private, the Boston-based firm separated the two businesses again under WinTriX, said a third source with knowledge of the situation.
The sale also comes as data centre valuations have soared in the last few years, driven by rapid developments of artificial intelligence.
Last year Australian data centre operator AirTrunk was sold to a Blackstone-led consortium for over 20 times its forward core earnings, Reuters reported.
WinTriX's Chinese rival GDS Holdings is currently trading at a price-to-earnings multiple of 8.48 times, LSEG data showed.
Fitch Ratings however in February downgraded WinTriX's long-term foreign- and local-currency issuer default ratings to 'BB' from 'BBB' with a stable outlook, which it said reflected its expectations that WinTriX would face significantly higher business risks as it changed its strategy to focus on overseas investment.
Fitch cited slower hyperscale data centre demand and higher competition in China as one of the additional risks WinTriX would face.
WinTriX counts social media giant Bytedance as its largest customer, which contributed to 86 per cent of its revenue in 2022, according to the Fitch report.
Outside China, it also operates data centres in India and Malaysia.
In March, WinTriX's unit Bridge Data Centres, which operates data centres outside China, secured a US$2.8 billion bank financing to fuel its data centre expansion, it said at the time.
Bain Capital will keep its control of Bridge Data Centres for the time being, said the sources. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
an hour ago
- Business Times
Stamford Land H2 profit falls 14.2% to S$17.6 million on lower contributions from property development segment
[SINGAPORE] Property company Stamford Land reported a 14.2 per cent fall in net profit to S$17.6 million for its second half ended March, from S$20.6 million in the year-ago period. Earnings per share (EPS) stood at S$0.0119, down from S$0.0138. This came amid a 6.5 per cent decline in revenue, which came in at S$78.3 million as compared to S$83.8 million previously. The declines were driven by lower revenue in its property development segment, which recorded S$4.6 million less in contributions for H2 compared to the year-ago period, the group said on Friday (May 30). The hotel owning and management segment faced S$516,000 lower revenue for the half-year while the property investment segment recorded S$204,000 lower revenue. A final dividend per share of S$0.005 was proposed, unchanged from the year-ago period, with the date payable and book closure date to be announced at a later date. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up For the full year, its net profit stood at S$32.8 million, an increase from S$5.9 million it recorded in the year-ago period. EPS was S$0.0221 versus S$0.004 in the year prior. Revenue for the year was largely stable, falling by 5.5 per cent to S$148.4 million, from S$157 million previously. Lower full-year revenue came amid a S$6.4 million or 89.4 per cent decline in revenue from the property development segment, as the group settled one unit during the fiscal year, down from 10 units a year prior. The hotel owning and management segment's revenue dipped marginally by 1.7 per cent or S$2.1 million. This was primarily due to lower room rates in the group's hotels, caused by softer market conditions, including the depreciation of the Australian dollar against the Singapore dollar. The segment also faced higher operation costs on increased property taxes, alongside staff, energy and other direct costs. The property investment's revenue was largely stable, rising slightly by 0.1 per cent due to the appreciation of the sterling pound against the Singapore dollar. In terms of outlook, the group noted that the hotel business faces 'formidable competition' amid global trade uncertainty and trade war tariffs, alongside a tight labour market and rising operational and manpower costs. The counter ended Friday flat at S$0.375 before the announcement.
Business Times
an hour ago
- Business Times
ECB expected to cut rates again as Trump trade war rumbles on
[FRANKFURT] The European Central Bank (ECB) is expected to deliver its seventh-straight interest rate cut this week as US President Donald Trump's volatile trade policies add to headwinds for the sluggish eurozone. Even before Trump unleashed his on-off tariff onslaught on the world, the ECB had been bringing borrowing costs down as inflation eased. Worries about sluggish performance in the 20 countries that use the euro have increasingly overshadowed inflation concerns as higher rates have pinched businesses and households. Trump's tariffs have added to the sense of urgency. Europe is in the US president's crosshairs over its hefty surplus in traded goods with the United States, stoking fears about a heavy hit to the continent's exporters. Predicting a cut when the ECB's governing council meets on Thursday (Jun 5), HSBC said the eurozone's 'near-term outlook has deteriorated on the recent US tariffs announcements and related uncertainty'. Analysts expect another quarter-point reduction that would take the Frankfurt-based institution's key deposit rate to 2 per cent. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up But observers believe the June cut could be the final one in the current streak, with the ECB likely to pause at its next meeting in July to take stock of the latest economic developments. The ECB's series of cuts stands in contrast to the US Federal Reserve, which has kept rates on hold recently amid fears that Trump's levies could stoke inflation. Global order 'fracturing' Trump has already hit the EU with multiple waves of tariffs – it currently faces a 10 per cent 'baseline' levy as well as 25 per cent duties on cars, steel and aluminium. He has paused even higher rates on the EU and other trading partners to allow for talks, momentarily easing some of the tensions that had roiled global markets. But in a sign the trade war may be far from over, he threatened last month to swiftly impose a 50 per cent tariff on the EU – only to delay the move a few days later to Jul 9. Highlighting the alarm felt in Europe, ECB president Christine Lagarde said last week that the global economic order backed by US leadership was 'fracturing'. 'Multilateral cooperation is being replaced by zero-sum thinking and bilateral power plays,' she said in a speech in Berlin. But the ECB faces a tricky task in protecting the eurozone from the mercurial US president's trade policies while keeping inflation stable. Euro-area inflation was 2.2 per cent in April, slightly above the ECB's 2 per cent target and higher than expected. May's inflation estimate will be published by Eurostat on Tuesday ahead of the ECB meeting. But most recent signs suggest price pressures are easing faster than previously thought, and the ECB is expected to cut its inflation predictions when it releases its own new economic forecasts on Thursday. Downward pressure Most analysts expect Trump's tariffs to add to downward pressure on eurozone inflation, particularly as it might lead China – facing the highest US levies – to redirect inexpensive manufactured goods to Europe. The ECB is expected to cut its growth estimates on Thursday due to the impact of the trade war, after the EU slashed its forecasts last month. While investors will be on the lookout for any clues from Lagarde about the ECB's next move, analysts warn that heightened uncertainty means she will give little away. The meeting will likely also produce questions over the future next moves for Lagarde. The former head of the World Economic Forum Klaus Schwab told The Financial Times last week that he had spoken with Lagarde about her taking over as head of the organisation. The ECB brushed away the rumours, saying Lagarde was 'determined' to see out her term at the helm of the central bank. AFP
Straits Times
an hour ago
- Straits Times
Philippines orders AirAsia Move shutdown on excessive pricing
The authorities have asked the police to take down AirAsia Move's website as part of a cease-and-desist order by the Civil Aeronautics Board. PHOTO: REUTERS MANILA – The Philippines has ordered AirAsia's digital platform to stop selling airline tickets in the country following complaints it charged illegally high fares. The authorities have asked the police to take down AirAsia Move's website as part of a cease-and-desist order by the Civil Aeronautics Board, Transportation Secretary Vince Dizon said at a press conference on June 2. The aviation agency, which sets price ceilings for airfares in the country, says the company hiked its prices following transportation troubles in Tacloban City due to the closure of a key bridge to trucks. 'We will really put the full force of the law on these unscrupulous online platforms who are taking advantage of our people,' Mr Dizon said. Authorities will move to immediately file a case for 'criminal economic sabotage' against the digital platform, which is owned by Capital A Berhad, he added. Malaysia-based AirAsia Move, which is an affiliate of budget carrier Philippines AirAsia, didn't immediately respond to a request for comment. During the weekend, AirAsia Move charged 77,000 pesos (S$1,800) for a one-way ticket from Manila to Tacloban City via Philippine Airlines, three times the price quoted when directly booking in the flag carrier's website, transportation ministry data show. 'Clearly, this is just absurd,' Mr Dizon said at the briefing. 'What AirAsia Move is doing is criminal.' Bloomberg Join ST's Telegram channel and get the latest breaking news delivered to you.
