VNET Group to receive $299M strategic investment from Shandong Hi-Speed

VNET Group announced that Success Flow and Choice Faith Group have entered into an investment agreement with VNET to make an equity investment in an aggregate amount of $299M in the company. Both Success Flow and Choice Faith are beneficially owned by Shandong Hi-Speed Holdings – SDHG -, the shares of which are listed on the Main Board of The Hong Kong Stock Exchange. Success Flow will make an equity investment of $209.3M in the company by subscribing for 455,296,932 newly issued Class A ordinary shares of the company and Choice Faith will make an equity investment of $89.7M in the company by subscribing for 195,127,260 newly issued Class A ordinary shares of the company, both in cash at a subscription price of $0.4597 per Class A ordinary share of the company, or $2.7582 per ADS. Each ADS represents six Class A ordinary shares. After the investment, Success Flow and Choice Faith will hold approximately 29.5% and 12.6% of the total issued and outstanding shares of the company, and approximately 25.0% and 10.7% of the voting power, respectively. The closing of the proposed investment is expected to occur around the end of 2023 or January 2024.