21Vianet’s Founder and Executive Chairman to Expand Ownership in 21Vianet
21Vianet Group, Inc. (Nasdaq: VNET) announced that its Founder and Executive Chairman, Josh Sheng Chen, has confirmed a purchase agreement where Beacon Capital Group Inc. will acquire 17,140,898 Class A ordinary shares from Tuspark Innovation Venture Limited for approximately US$50 million, at a price of US$2.917 per share. Chen expressed confidence in the company's long-term prospects through this increased shareholding, while Tuspark indicated the sale aligns with their planned exit strategy.
- Increased shareholding by Founder and Executive Chairman, demonstrating confidence in the company's future.
- Acquisition of 17,140,898 shares signals strong financial backing.
- Potential risks associated with the execution of the share purchase agreement.
BEIJING, Aug. 06, 2021 (GLOBE NEWSWIRE) -- 21Vianet Group, Inc. (Nasdaq: VNET) (“21Vianet” or the “Company”), a leading carrier- and cloud-neutral internet data center services provider in China, today announced that Mr. Josh Sheng Chen, the Company’s Founder and Executive Chairman of the Board, has informed the Company that Beacon Capital Group Inc., a company controlled by Mr. Chen, has entered into agreements with Tuspark Innovation Venture Limited (“Tuspark”), pursuant to which Beacon Capital Group Inc. will purchase from Tuspark 17,140,898 Class A ordinary shares of the Company for an aggregate purchase price of approximately US
Mr. Chen also made the following comment, “As announced earlier in the year, Tuspark and I have had discussions on their exit from their financial investment in 21Vianet. With this agreement, I will be increasing my shareholding as a further demonstration of my full confidence in the Company’s long term prospects.”
Mr. Cai Xiaowei, President of Tus-Holdings, commented, “This sale of shares is consistent with the plans as laid out in the ongoing consent solicitation process as announced by Tuspark Forward Ltd to its various stakeholders.”
About 21Vianet
21Vianet Group, Inc. is a leading carrier- and cloud-neutral Internet data center services provider in China. 21Vianet provides hosting and related services, including IDC services, cloud services and business VPN services to improve the reliability, security and speed of its customers' Internet infrastructure. Customers may locate their servers and equipment in 21Vianet's data centers and connect to China's Internet backbone. 21Vianet operates in more than 20 cities throughout China, servicing a diversified and loyal base of over 6,000 hosting and related enterprise customers that span numerous industries ranging from Internet companies to government entities and blue-chip enterprises to small- to mid-sized enterprises.
Safe Harbor Statement
This announcement contains forward-looking statements. These forward-looking statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," “target,” "believes," "estimates" and similar statements. Among other things, quotations from management in this announcement as well as 21Vianet's strategic and operational plans contain forward-looking statements. 21Vianet may also make written or oral forward-looking statements in its reports filed with, or furnished to, the U.S. Securities and Exchange Commission, in its annual reports to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about 21Vianet's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. These uncertainties include the possibility that the announced transaction will not occur as planned if events arise that result in the termination of the relevant share purchase agreement, or if one or more of the various closing conditions to the transaction are not satisfied or waived. A number of factors could also cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: 21Vianet's goals and strategies; 21Vianet's expansion plans; the expected growth of the data center services market; expectations regarding demand for, and market acceptance of, 21Vianet's services; 21Vianet's expectations regarding keeping and strengthening its relationships with customers; 21Vianet's plans to invest in research and development to enhance its solution and service offerings; and general economic and business conditions in the regions where 21Vianet provides solutions and services. Further information regarding these and other risks is included in 21Vianet's reports filed with, or furnished to, the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and 21Vianet undertakes no duty to update such information, except as required under applicable law.
Investor Relations Contacts:
21Vianet Group, Inc.
Julia Jiang
+86 10 8456 2121
IR@21Vianet.com
ICR, LLC
Robin Yang
+1 (646) 405-4922
IR@21Vianet.com
FAQ
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