Shares of data center solutions provider Chinadata Group Holdings (NASDAQ:CD) are in focus today on reports that Bain Capital is close to acquiring the company.
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Bain has made a $8 per American Depository Share (ADS) offer for Chinadata and now, discussions are ongoing to zero in on a final valuation. Further, Bain has already locked in financing to acquire stakes from minority investors and a final transaction could come as soon as this month.
A final deal is yet to be chalked out and interestingly, Chinadata also received a $9.20 per ADS offer from the China Merchants Capital last month. While this is the superior offer, Bloomberg noted that Chinadata may not accept it and Bain could potentially sweeten its offer to bag the deal.
Meanwhile, the Street has an $11.11 consensus price target on Chinadata alongside a Strong Buy consensus rating. This points to a hefty 39.2% potential upside in the stock on top of a ~10.5% price gain over the past month alone.
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