The Tech Capital International Finance Forum
Trending
Latest

GDS, GLP $10bn merger hits wall as data centre stock slumps

News of the potential merger first surfaced in May 2021 intended to make GLP a shareholder in GDS.

By João Marques Lima

Founder and Editor, The Tech Capital

2 Mins

January 17, 2022 | 4:31 AM GMT

Plans to merge GDS Holdings Ltd.’s (NASDAQ: GDS) business with Singapore-based investment manager GLP Pte’s data centres in China have hit a wall after GDS stock failed to impress investors.

According to sources speaking to Bloomberg, as GDS’s stock fell by almost 60% in the last 12 months, the business’ capability to finance a cash-and-shares deal has been hindered.

The two parties may, however, still pick up merger discussions later on, the same people said.

The Tech Capital has reached out to both GDS and GLP for further information and we will update this article when more data is available.

News of the potential merger first surfaced in May 2021 when Bloomberg reported talks between GDS and GLP over a transaction in which GLP would have become a shareholder in GDS.

The deal was valued at the time by people familiar with the matter at $8 billion to $10 billion.

GDS enjoys a market cap of $8.69 billion at the time of writing.

Daily

Daily Brief

A morning briefing on what you need to know in the day ahead, including exclusive commentary from Tech Capital's writers

Login or Register to comment on this article

Listen to this article
Share this article
Keywords
More From

João Marques Lima

Founder and Editor, The Tech Capital

Related Articles