Hong Kong-listed Shandong Hi-Speed Holdings Group has agreed to acquire a 42.1% stake in Chinese data center operator VNet for a cash consideration of US$299 million.

Shandong Hi-Speed Holdings Group Limited (SDHG) owns both Success Flow and Choice Faith. Through the Investment Agreement, Success Flow will invest US$209.3 million in the Company by purchasing 455,296,932 newly issued Class A ordinary shares. Choice Faith will invest US$89.7 million in the Company by purchasing 195,127,260 newly issued Class A ordinary shares. Both investments will be made in cash at a subscription price of US$0.4597 per Class A ordinary share or US$2.7582 per American depositary share (ADS). Each ADS represents six Class A ordinary shares. Upon completion of the Proposed Investment, Success Flow and Choice Faith will hold roughly 29.5% and 12.6% of the Company's total issued and outstanding shares, respectively. The closing of the Proposed Investment is anticipated to take place around the end of 2023 or January 2024.