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VNET Shares Pop On Takeover Offer At 75% Premium

Benzinga · 09/13/2022 09:53
  • VNET Group, Inc (NASDAQ:VNETbagged a preliminary non-binding proposal from its founder and Chair Josh Sheng Chen to acquire it for $8.20 in cash per ADS or $1.3667 per share.
  • The purchase price implies a 74.8% premium based on the September 12 closing of $4.69.
  • The board has formed a special committee of three independent directors, Kenneth Chung-Hou Tai, Sean Shao, and Changqing Ye, to evaluate and consider the proposed transaction and other potential strategic alternatives.
  • VNET slashed its plans for new cabinet installations this year by 30% and lowered its revenue outlook by a more modest 2.6%. VNET hired Citigroup to advise it on a buyout offer led by Hina Group from April this year
  • VNET clocked 15.2% revenue growth to $257.5 million in Q2, beating the consensus.
  • EPS loss of $(0.36) was in-line with the consensus.
  • Price Action: VNET shares traded higher by 19.5% at $5.61 on the last check Tuesday.