Chinese data centre operator 21Vianet Group has signed share purchase agreements with affiliates of internet-based software provider Kingsoft, smartphone manufacturer Xiaomi and Singapore-based investment company Temasek. All shares to be issued in these transactions are newly issued shares of 21Vianet. Kingsoft, Xiaomi, Temasek have agreed to invest an overall USD 296 mln in 21Vianet.
Kingsoft has agreed to invest a total USD 172 million in 21Vianet, with a purchase price of USD 3 per ordinary share (the equivalent of USD 18 per ADS). The investment will all be in newly issued 39,087,125 Class A and 18,250,268 Class B ordinary shares. Following the completion of the transaction, Kingsoft will hold approximately 11.6 percent equity ownership in 21Vianet, representing approximately 19.9 percent of the voting power. Kingsoft will have the right to nominate one director to 21Vianet's board of directors.
Xiaomi has agreed to make a total investment of USD 50 million in 21Vianet, with a purchase price of USD 3 per ordinary share ( the equivalent of USD 18 per ADS). The investment will all be in newly issued 6,142,410 Class A and 10,524,257 Class B ordinary shares. Xiaomi will hold approximately 3.4 percent equity ownership in 21Vianet, representing approximately 10 percent of the voting power. Xiaomi will have the right to nominate one director to 21Vianet's board of directors.
Temasek will invest USD 74 million in 21Vianet, with a purchase price of USD 3 per ordinary share (the equivalent of USD 18 per ADS). The investment will be in newly issued 24,668,020 Class A ordinary shares, or the equivalent of 4,111,337 ADSs. Temasek will hold approximately 13.1 percent equity ownership in 21Vianet, representing 5.8 perent of the voting power.
Following the consummation of the investment contemplated under the share purchase agreement with Kingsoft, 21Vianet and Kingsoft will sign a business cooperation memorandum. Under the terms of the memorandum, 21Vianet will build, operate, maintain and provide technical support for new data centers in China to meet Kingsoft and its designated third party's next-generation cloud infrastructure requirements. 21Vianet will lease to Kingsoft and its designated third party (agreed to by 21Vianet) a combined minimum of 5,000 cabinets over the next three years.
