A consortium of six Asian institutional and private investors has acquired a 24.99% stake in the company in a transaction valued at £2.1 billion.
Global Switch Holdings has revealed a new investor consortium, comprising both new and existing Global Switch investors, to further support the growth of the company.
Strategic IDC Limited has agreed to acquire a 24.99% stake in the Company for an aggregate cash consideration of £2.1 billion. This payment comprises £1.8 billion for the shares in Global Switch and a further amount of £300 million to Aldersgate Investments Limited. The transaction reaffirms Global Switch as one of the most highly valued data centre businesses in the world.
The Strategic IDC consortium includes follow-on investment from existing Global Switch institutional and private investors including AVIC Trust and the Hong Kong investment arms of Haoyue Capital and Jiangsu Sha Steel Group, the largest private steel maker in China, as well as the introduction of new stakeholders including the Hong Kong regulated China CITIC Bank International, which is providing debt funding to Strategic IDC Limited. As part of the transaction, Li Qiang, the Chairman of Global Switch, will increase his personal stake in Global Switch from 0.7% to 4.8%.
Following the transaction, existing investors, Aldersgate Investments and Elegant Jubilee, will own 24.01% and 51% of the Company respectively and Strategic IDC will own 24.99%.
It is the current intention that Global Switch’s new and existing shareholders, including Aldersgate Investments and Jiangsu Sha Steel Group, will continue to retain stakes in the company in the event of any future IPO.
John Corcoran, Chief Executive Officer of Global Switch, said:
“We are excited to be announcing further investment into Global Switch from high quality institutional investors alongside Aldersgate Investments and Elegant Jubilee. This investment from both new and existing investors, is a clear endorsement of our strategy as we move towards listing Global Switch on an international stock exchange and seek to successfully extend our market leadership positions across Europe and Asia as the data centre provider of choice for new customers from across the globe. 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.”
Alexander Bushaev, Director of Aldersgate Investments Limited, added:
“We are delighted to welcome Strategic IDC to join with Aldersgate and Elegant Jubilee as investors in Global Switch. Having first invested in Global Switch in 2006 and supported its global growth and development during that time, we are very pleased to see the company going from strength to strength more than 12 years on.”
Ge Yajing, Director of Strategic IDC, commented:
“We’re thrilled to be investing in Global Switch, which is now one of the leading data centre companies in the world. The company’s strong and experienced management team, operational excellence and leading strategic position in 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.”
Li Qiang, Chairman of Global Switch, concluded:
“We are delighted that Strategic IDC has acquired a 24.99% stake in Global Switch, while on a personal level, I am pleased to be increasing my own equity stake in the company, reflecting my confidence in the strength of the business and its prospects. The investment from Strategic IDC is a testament to both the quality of the company and the tremendous strategic progress Global Switch has continued to make over the last twelve months. This includes the launch in December 2017 of Stage 1 of a new state of the art HK$5 billion data centre in Hong Kong, two new €500 million bond issuances and significant progress with the construction of Singapore Woodlands, Global Switch’s second data centre in that location and the formation of a game-changing, co-operational agreement with China Telecom Global and Daily-Tech, the leading developer and operator of data centre infrastructure across China.”
There is no change to the management of the Company as a result of the transaction. John Corcoran, Chief Executive Officer, and David Doyle, Chief Financial Officer, and the existing management team will continue to manage the day-to-day running of the Company.