Hot Features
Premium
Trade smarter, not harder: Unleash your inner pro with our toolkit and live discussions.
Funding Launches Beijing’s Largest Data Center and China’s First Internet Exchange
ChinaCache International Holdings (Nasdaq:CCIH), a total solutions provider of Internet content and application delivery services in China, today announced that it has entered into definitive agreements for its subsidiary, ChinaCache Xin Run Technology (Beijing) Co., Limited, to sell 60% of Xin Run’s equity interest to three investors for a total consideration of RMB375.0 million. Xin Run owns and operates ChinaCache’s Atecsys Cloud Data Center and is expected to build China’s first Internet Exchange.
Pursuant to the agreements, Tianjin Shuishan Technology Co., Ltd., KPIW (Beijing) Investment Fund Co., Ltd. and Tianjin Dingsheng Zhida Technology Co., Ltd. will subscribe for 36%, 22% and 2%, respectively, of the post-investment equity interest in Xin Run for a consideration of RMB225.0 million, RMB137.5 million and RMB12.5 million, respectively. After the completion of the transaction, ChinaCache will, through a subsidiary, own 40% equity interest in Xin Run and will cease to consolidate the results of Xin Run and its subsidiaries. ChinaCache may recognize investment gains under the US GAAP as the result of this transaction.
ChinaCache also agrees not to engage in the data center business that competes with Xin Run until the completion of a qualified initial public offering of Xin Run.
Atecsys is located in Shunyi Tianzhu Tax Free Zone in Beijing, China and is expected to become the largest International T3+ Data Center in Beijing based on the total number of server racks, which will be approximately 15,000 when completed. Atecsys offers over 80,000 square meters of customer space and is comprised of ten buildings for the data centers and one for the Internet Exchange, which is expected to become China’s first Internet Exchange when completed. The Internet Exchange is designed to serve the Internet industry in China with effective interconnection and peering services through world-class technologies and a private backbone line across key cities from Beijing to Hangzhou.
“We are extremely excited to receive the support from investors to officially introduce Beijing’s largest Data Center and the first Internet Exchange in China, which marks a significant milestone for ChinaCache,” commented Song Wang, founder, Chairman and CEO of ChinaCache. “The rapid growth of China’s Internet industry is generating enormous demand for Cloud services and Big Data, which requires increased data storage and Internet infrastructure. By integrating our vast content delivery network (CDN) and profound technology resources, the state-of-the-art Atecsys International Data Center and Internet Exchange enable ChinaCache to establish a complete eco-system and comprehensive service platform. We can now provide Internet service providers, content providers, Cloud service providers and enterprises with an unparalleled total solution.”
“We believe the structure of this transaction provides a clear and substantial valuation for Xin Run and will significantly increase our shareholder value. We look forward to continuing our expansion into related areas, while further improving the Internet infrastructure in China,” concluded Mr. Wang.
Tianjin Shuishan Technology Co., Ltd. is owned by Mr. Song Wang, Chairman of the Board of Directors and Chief Executive Officer of ChinaCache. Mr. Wang will obtain a loan from KPIW (Beijing) Investment Fund Co., Ltd. to make this investment.
The completion of the transaction is subject to customary closing conditions, including the obtain of requisite governmental approvals. The transaction has been approved by the audit committee of the Board of Directors of the Company.
