GDS’s $505 Million Private Placement


Simpson Thacher represented GDS Holdings Limited in the transaction.

Hillhouse Capital (“Hillhouse”) and ST Telemedia Global Data Centres (“STT GDC”) purchased, through a private placement, a total of $505 million newly issued Class A ordinary shares of GDS at a price equivalent to $65 per ADS. Hillhouse subscribed for $400 million and STT GDC subscribed for $105 million.

The proceeds from the investment will be used by GDS for its organic data center development, potential acquisition opportunities, and other general corporate purposes.

GDS Holdings Limited (Nasdaq: GDS) is a leading developer and operator of high-performance data centers in China. The Company’s facilities are strategically located in China’s primary economic hubs where demand for high-performance data center services is concentrated.

Founded in 2005, Hillhouse is a global East and Southeast Asia- focused private equity firm.

ST Telemedia Global Data Centres (STT GDC) is a fast-growing data centre provider headquartered in Singapore.

The Simpson Thacher team representing GDS included Daniel Fertig (Picture), Andrew Laub and Yi-Ping Chang (Capital Markets); and Jonathan Cantor and Jasmine Hay (Tax).

Involved fees earner: Jonathan Cantor – Simpson Thacher & Bartlett; Yi-Ping Chang – Simpson Thacher & Bartlett; Daniel Fertig – Simpson Thacher & Bartlett; Jasmine Hay – Simpson Thacher & Bartlett; Andrew Laub – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: GDS Holdings Limited;

Author: Michael Patrini