The stake has been acquired from Aldersgate Investments Limited, a Reuben Brothers company, in a transaction valued at £1.8bn.
Chinese based privately owned steel maker Jiangsu Shagang Group Co., Ltd has acquired a 24.01% stake in data centre company Global Switch Holdings Limited. The investment by Shagang Group, through an indirect wholly owned investment vehicle, increases its equity stake in Global Switch to 49.9% on a look through basis.
Shagang Group had previously acquired indirect stakes in the Company through its participation in the Elegant Jubilee Limited and Strategic IDC Limited consortia of institutional and private investors, which invested in Global Switch in December 2016 and July 2018.
“We are delighted that Shagang has completed further investment in Global Switch. Our investment in the digital centre industry not only complies with the China’s Belt and Road initiative, but also coincides with the development direction for our own transformation and upgrade,” said Shen Wenrong, Chairman of Shagang Group.
“Global Switch is perfectly placed to service global customers from east and west in an increasingly data-led global economy, where Global Switch is already playing a critical role in delivering services to both national and international customers in Hong Kong. Shagang will make full use of its own global resources and take full advantage of the excellent management team of Global Switch, to support Global Switch in achieving great progress and high-quality growth worldwide, especially in the Asia-Pacific Region.”
Following the transaction, Aldersgate Investments Limited has now fully exited its equity participation in Global Switch. Aldersgate acquired full control of Global Switch in 2007.
“We are delighted that the Shagang Group, one of China’s leading private companies, with a track record for investment acumen, manufacturing and service excellence, has acquired a further 24.01% stake in Global Switch and we welcome the new Board director representatives,” said John Corcoran, Chief Executive Officer of Global Switch.
“This further investment is a continued testament to the quality of the Company, strong track record of financial performance and super prime locations. This follow-on investment by Shagang Group is also a further endorsement of our strategy and the exciting future at Global Switch as we move towards an IPO of the Company on a major international stock exchange, subject of course to market conditions. We remain proud of our track record in delivering best in class, mission critical data centre infrastructure, world class security and flexibility for all our customers and this remains our priority as we continue to execute on our profitable growth strategy. On behalf of the Board, I would also like to extend our gratitude to the Reuben brothers for their vision, investment and unstinting support for Global Switch for more than a decade, during which time it has been transformed into a truly global company.”
Simon Reuben and Alexander Bushaev, representatives of Aldersgate Investments Limited, have tendered their resignations from the Board with immediate effect following the sale of Aldersgate’s equity position. Following the changes, the Board will comprise six directors: He Chunsheng, John Corcoran, David Doyle, Shen Qian, Nie Wei, and Li Qiang.