ChinaCache Terminated Agreement to Sell Data Center Assets
May 02 2018 - 9:03AM
ChinaCache International Holdings Ltd. ("ChinaCache" or the
"Company") (Nasdaq:CCIH), a leading total solutions provider of
Internet content and application delivery services in China, today
announced that it has terminated the definitive agreement (the
“Agreement”) disclosed on March 6, 2017, to sell 79% of the
Company’s equity interest in ChinaCache Xin Run Technology
(Beijing) Co. Limited (“Xin Run”), which owns and operates the
Company’s Internet data center business, to Tianjin Shuishan
Technology Co, Ltd., Shanghai Qiaoyong Equity Interest Investment
Fund Management Co., Ltd. and Tianjin Dingsheng Zhida Technology
Co., Ltd. for a total consideration of RMB221.1 million.
Tianjin Shuishan Technology Co, Ltd., and
Tianjin Dingsheng Zhida Technology Co., Ltd. are controlled by Mr.
Song Wang, Chairman of the Board and Chief Executive Officer of
ChinaCache. The termination of the Agreement was approved by
the Company’s Audit Committee. None of the parties to the
Agreement incurred a breakup fee due to the termination.
The Company’s strategic decision to terminate
the Agreement was made in recognition of the perceived value of the
assets in light of increasing market demand for Internet data
center services and the belief that Xin Run can effectively be
leveraged as part of the Company’s offering package to customers,
thus better positioning the Company for long-term growth.
“China is rapidly adopting a digital lifestyle
and Cloud and new data-intensive technologies, such as AI and big
data analytics, are fanning demand for increasing Internet data
center capacity and related services,” said Mr. Song Wang.
“With ten Internet data centers in Beijing hosting capacity for
12,400 racks, Xin Run is growing quickly and capturing wide-spread
demand from government agencies and businesses, including several
leading Internet and Cloud service enterprises. Against this
backdrop, we see a compelling value proposition as we offer
customers total solution services, comprised of our Internet data
centers, Internet and Cloud exchange centers and our extensive
content delivery network. We believe this three-layered
structured network will provide an integrated and broad-base of
operations from which we can capitalize on our strengths and
deliver sustained shareholder value.”
About ChinaCache International Holdings
Ltd.
ChinaCache International Holdings Ltd.
(Nasdaq:CCIH) is a leading total solutions provider of Internet
content and application delivery services in China. Through its
distinctive 3-tier Internet ecosystem, China Cache also offers
Internet data center management, Internet Exchange operations and
cloud hosting services. ChinaCache’s network is interconnected with
those operated by the three dominating telecom carriers (China
Mobile, China Unicom and China Telecom) and local Internet service
providers in China. With two decades of experience in
developing solutions tailored to China’s complex Internet
infrastructure, ChinaCache has helped enterprises, SME clients,
government agencies and other organizations enhance the reliability
and scalability of their online services and applications within
Mainland China. To learn more about ChinaCache and how it has
improved end-user experience, please visit ir.chinacache.com.
Safe Harbor Statement
This announcement contains forward-looking
statements. These statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation Reform Act of
1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements.
ChinaCache may also make written or oral forward-looking statements
in its reports filed or furnished to the U.S. Securities and
Exchange Commission, in its annual reports to shareholders, in
press releases and other written materials and in oral statements
made by its officers, directors or employees to third parties.
Forward-looking statements involve inherent risks and
uncertainties. A number of factors could cause actual results to
differ materially from those contained in any forward-looking
statements, including but not limited to the following: the
Company's goals and strategies, expansion plans, the Company's
expectations regarding keeping and strengthening its relationships
with its customers, and the general economic and business
conditions in the regions where the Company provides its solutions
and services. Further information regarding these and other risks
is included in the Company's filings with the U.S. Securities and
Exchange Commission. All information provided in this press release
is as of the date of this press release, and ChinaCache undertakes
no duty to update such information, except as required under
applicable law.
For investor and media inquiries please
contact:
Investor Relations DepartmentChinaCache International
HoldingsTel: +86 10-6408 5086Email: ir@chinacache.com
Mr. Ross WarnerThe Piacente Group | Investor RelationsTel: +86
10-5730-6201Email: chinacache@tpg-ir.com
Ms. Brandi PiacenteThe Piacente Group | Investor RelationsTel:
+1 212-481-2050Email: chinacache@tpg-ir.com
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