Bain Capital inching closer to Chindata takeover – report

Bain Capital is moving closer toward a potential takeover of data center operator Chindata Group Houp (NASDAQ:CD).

Talks between private equity firm Bain and Chindata’s board, which is evaluating an $8 per ADS offer from Bain, are now centered on determining a valuation, according to a Bloomberg report on Sunday, which cited people familiar with the matter. Bain has secured financing to buy out minority shareholders, and a deal could be reached as early as this month.

No final decisions have been made, talks are still taking place, and a potential agreement could still be delayed, according to the report.

The news comes after Chindata (CD) received a preliminary non-binding proposal letter from Bain in June for $8 per ADS. In July, an arm of state owned conglomerate China Merchants Capital made a $3.4 billion takeover offer, or $9.20 per ADS, topping a bid from Bain Capital for the Asian data center operator.

China Merchants Capital’s non-binding offer is unlikely to be accepted by Chindata (CD), according to the Bloomberg report. Bain may consider increasing its offer price to get a deal over the finish line.

Bloomberg reported in November that China Merchants was exploring a takeover of Bain-backed Chindata (CD). The news outlet also reported last April that Chindata (CD) had received takeover interest from other firms in the industry.

Chindata (CD) is scheduled to report Q2 results on Aug. 31.

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