Tsinghua University gains approval for an investment in data centre service provider 21Vianet to control 51% of its voting share with an approximate 21.4% share stake.
TUS Holdings, the enterprise arm of Tsinghua University, has agreed to a $388m strategic investment in 21Vianet, a data centre service provider, according to China Money Network and Yahoo.
21Vianet is currently undergoing a proposed management buyout.
TUS Holdings, through an affiliated investment vehicle, will subscribe to new shares in 21Vianet at $16.274 per American Depositary Share. The transaction is expected to close this month.
The transaction will make TUS Holdings the largest voting power shareholder. It will control an approximate 21.4% stake in the company that represents 51% of the voting share.
21Vianet is backed by Temasek, an investment firm owned by the government of Singapore. It invested in December 2014 along with China-based software company Kingsoft and China-based electronics company Xiaomi. The total investment was $296m.
TUS Holdings’ investment will dilute Temasek, Kingsoft and Xiaomi’s stakes.
21Vianet trades on the Nasdaq under ticker symbol VNET. It listed in 2011 with a share price of $18.80, as of writing it is trading at $14.50.
