Bloomberg- 3rd July 2018
A consortium of Asian investors acquired a 25 percent stake in data center provider Global Switch Holdings Plc for 2.1 billion pounds ($2.8 billion) as demand for information storage rises.
The venture assembled by Strategic IDC Ltd., which includes China Citic Bank International and Jiangsu Sha Steel Group, the largest privately-held steelmaker in China, bought the stake ahead of a planned initial public offering next year. The billionaire Reuben brothers will continue to jointly control the firm after the deal is completed.
Global Switch is a real estate firm that builds and operates data centers that are used for services including cloud services. It does not provide any technology services to its customers. Late last year it opened a $640 million data centre in Hong Kong and is constructing a facility in Singapore that’s due to be completed later this year.
“Europe and Asia present incredible strategic growth opportunities, particularly in China, where the company is already playing a critical role in delivering services to both national and international customers in Hong Kong as part of China’s Belt and Road initiative,” Ge Yajing, a director at Strategic IDC, said in a statement on Tuesday.
Simon and David Reuben’s Aldersgate Investments Ltd will receive 300 million pounds as part of the deal, with the remaining 1.8 billion pounds being paid for the shares in Global Switch. After the deal is completed, Aldersgate will own 24 percent of the company with Elegant Jubilee owning 51 percent.
The shareholders plan to continue to retain stakes in the company if it proceeds with an IPO.