On March 24, 2021, Beijing Time (GLOBE NEWSWIRE) -- Today VNET Group, Inc. (hereinafter referred to as VNET Group) (NASDAQ:VNET), which is a leading carrier-neutral and cloud-neutral IDC service provider in China, announced that it has signed a share repurchase agreement with TusHoldings Co., Ltd. (hereinafter referred to as TusHoldings). According to the agreement, VNET Group will buy back 48,634,493 Class B common shares of the group from TusHoldings, with a total price of about US$ 260 million. The repurchase price is calculated by 88% of the weighted average price of daily trading volume 30 trading days prior to March 22, 2021, that is, the repurchase price is US$ 5.346 per common share, or US$ 32.076 per ADS share.
Josh Chen, Founder & Executive Chairman of VNET Group, said, “We are grateful for the vigorous support and assistance from TusHoldings Co., Ltd., Chairman of TusHoldings Wang Jiwu, the management team of TusHoldings, and Tsinghua industrial system in the past five years. Past is prologue. In the future, VNET Group will continue to work closely with Tsinghua scientific research system and Tsinghua alumni science innovation network system, attach more importance to net zero-carbon IDC strategy and China's “30·60” decarbonization goal; build a new generation of hyper-scale green data centers through technological innovation, and continuously enhance the long-term value of VNET Group, so as to become the most outstanding and respected enterprise in the industry.”
Chairman of TusHoldings Wang Jiwu said, “VNET Group is a leading enterprise in China's IDC industry, with great aspiration, ambition and long-term sustainable development strategy. TusHoldings has made great success through investments in VNET Group. I would like to thank Josh Chen, the Founder of VNET Group, and the management team, for their relentless efforts. TusHoldings and VNET Group will establish long-term cooperation after this transaction. Best wishes for VNET Group.”
Josh Chen continued, “On the occasion of the tenth anniversary of listing on NASDAQ, VNET Group is vigorously making preparations for its development in the next decade. A more open and diversified international shareholder structure, coupled with flexible and low-cost financing channels, will help us leverage technological innovations and high-quality resources, and empower the business growth of VNET Group while creating long-term value for shareholders.”
After this share repurchase, the directors nominated by TusHoldings will resign from the board of directors of VNET Group, and all the remaining Class B common shares held by these directors will be converted into the same number of Class A common shares.
In addition, VNET Group was informed that TusHoldings agreed to transfer a certain number of common shares to Beacon Capital Group Inc., which is an affiliated company of Josh Chen, at the same repurchase price offered by the aforementioned company. After the transfer is successfully completed, the shareholding ratio of TusHoldings in VNET Group will drop to less than 5%.
About VNET Group
Founded in 1996, VNET Group (NASDAQ: VNET) is one of the world's most influential cyberspace infrastructure service providers, and a leading carrier-neutral data center service provider in China. In addition, VNET Group is also the sole leading IDC service enterprise with the dual engines of “hyper-scale IDC wholesale solution + next-generation IDC retail” in China's IDC market. VNET Group is committed to providing industry-leading one-stop customized data center solutions for hyper-large clients, providing core clients with cloud computing integrated services and solutions, such as IDC-based cloud computing exchange connection, and hybrid delivery, and building an infrastructure operation platform with core customization advantages, hyper-scale data center operational capability and high added value. VNET Group has operated more than 50 data centers in over 20 cities across China, with more than 53,000 cabinets, network port capacity of 2,000G+, and 1,000 G+ high-speed cloud connect.
Safe Harbor Statement
This document contains forward-looking statements, which are made pursuant to the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified through words such as “will”, “expect”, “anticipate”, “future”, “intend”, “plan”, “believe”, “estimate” and similar words and expressions.
In addition, the statements of top management cited in this document, as well as the strategic and operational plans of VNET Group, contain certain forward-looking statements. VNET Group may also make forward-looking statements in writing or orally in its reports to the U.S. Securities and Exchange Commission, annual reports to shareholders, press releases and other written materials, as well as the oral statements made by its senior staff, directors or employees to third parties. All statements other than statements of historical fact (including VNET Group’s statements of faith and expectations) could be deemed forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Many factors may lead to significant deviation between the actual results and those in any forward-looking statement, including but not limited to: the objectives and strategies of VNET Group; expansion program of VNET Group; expected growth of data center service market; demand expectation and market acceptance of services provided by VNET Group; VNET Group's expectations for maintaining and strengthening customer relations; VNET Group's R&D investment plan for improving its solutions and service products, and the overall economic and commercial situation of the regions in which VNET Group provides solutions and services. Further information on such risks and other risks are included in the report that VNET Group submitted to the U.S. Securities and Exchange Commission. Except as required by applicable laws, VNET Group undertakes no duty to update the information contained in this document and the appendixes after the date of release.
