CyrusOne Sells GDS Shares to Raise Approximately $200 Million of Proceeds
April 12 2019 - 9:14AM
Business Wire
Proceeds to Fund Continued Strong Growth, Replacing a
Significant Portion of Equity Requirements for the Year
CyrusOne Inc. (NASDAQ: CONE), a premier global data center REIT,
today announced that it has sold approximately 5.7 million American
depository shares (“ADSs”) of GDS Holdings Limited (“GDS”) (NASDAQ:
GDS) for a total purchase price of approximately $200 million.
CyrusOne will continue to hold approximately 2.3 million ADSs,
valued at approximately $90 million based on the GDS closing price
on April 11, with the remaining shares being subject to a six-month
lock up. The commercial agreement between CyrusOne and GDS will
remain in place, and Gary Wojtaszek, CyrusOne’s President and Chief
Executive Officer, remains a member of the GDS Board of
Directors.
“GDS has created substantial value for its shareholders over the
last 18 months, in turn allowing us to recycle capital and generate
significant cash proceeds from the sale of shares, while
maintaining a position that approximates our original investment,”
said Wojtaszek. “This transaction replaces a meaningful portion of
our equity capital requirements for the year, with the proceeds
being deployed to fund attractive, profitable growth opportunities.
William and his team have been fantastic partners, and the nearly
20 megawatts of leases we signed last year with Chinese hyperscale
companies was a direct result of our relationship with GDS. As two
of the fastest-growing data center companies, we look forward to
continuing to work together to capitalize on the strong underlying
secular demand trends and meet the needs of our customers in the
two biggest economies in the world.”
This transaction was not contemplated in CyrusOne’s original
2019 guidance provided February 20, 2019. CyrusOne will provide
updated 2019 guidance when the Company reports its first quarter
2019 results after the market closes on Wednesday, May 1, 2019.
The transaction is expected to settle on April 16, 2019.
Safe Harbor
This press release contains forward-looking statements regarding
anticipated results and future events that are subject to the “safe
harbor” provisions of the Private Securities Litigation Reform Act
of 1995. All statements contained in this press release, other than
statements of historical facts, should be considered
forward-looking statements, including, without limitation,
statements about CyrusOne’s plans, objectives, expectations and
intentions, and any statement of an assumption underlying any of
the foregoing. These statements are based on current expectations,
estimates, forecasts and projections about the industries and
markets in which we and our customers operate and the current
beliefs, opinions and assumptions of our management. Words such as
“expects,” “anticipates,” “predicts,” “projects,” “intends,”
“plans,” “believes,” “seeks,” “estimates,” “continues,”
“endeavors,” “strives,” “may,” “will,” “should,” “could,” or the
negative of these terms or other variations of such words and
similar expressions, are intended to identify such forward-looking
statements. In addition, any statements that refer to projections
of our future financial or operating performance, our anticipated
growth and trends in our and our customers’ industries, businesses
and markets, or other characterizations of future events or
circumstances, are forward-looking statements. Readers are
cautioned that forward-looking statements are based on management’s
current expectations and assumptions and are subject to numerous
factors, risks and uncertainties which could cause our actual
results to differ materially and adversely from those expressed or
implied in any forward-looking statement. Factors that could cause
or contribute to such differences include, but are not limited to,
the Company’s ability to successfully execute and integrate its
expansion and development initiatives. More information on the
factors, risks and uncertainties that could cause or contribute to
such differences is included in our filings with
the Securities and Exchange Commission, including in the “Risk
Factors” and “Management’s Discussion & Analysis” sections of
our Annual Report on Form 10-K and in our subsequent Form 10-Q
reports and other filings with the SEC. Any forward-looking
statement made in this release speaks only as of the date of this
release. We undertake no obligation to update or revise any
forward-looking statement, whether as a result of new information,
change in circumstances, future events or otherwise, except as
required by law.
About CyrusOne
CyrusOne (NASDAQ: CONE) is a high-growth real estate investment
trust (REIT) specializing in highly reliable enterprise-class,
carrier-neutral data center properties. The Company provides
mission-critical data center facilities that protect and ensure the
continued operation of IT infrastructure for approximately 1,000
customers, including more than 210 Fortune 1000 companies.
With a track record of meeting and surpassing the aggressive
speed-to-market demands of hyperscale cloud providers, as well as
the expanding IT infrastructure requirements of the enterprise,
CyrusOne provides the flexibility, reliability, security, and
connectivity that foster business growth. CyrusOne offers a
tailored, customer service-focused platform and is committed to
full transparency in communication, management, and service
delivery throughout its more than 45 data centers worldwide.
Additional information about CyrusOne can be found
at www.CyrusOne.com.
About GDS
GDS Holdings Limited (Nasdaq: GDS) is a leading developer
and operator of high-performance data centers in China. The
company’s facilities are strategically located in China’s primary
economic hubs where demand for high-performance data center
services is concentrated. The company’s data centers have large net
floor area, high power capacity, density and efficiency, and
multiple redundancy across all critical systems. GDS is carrier and
cloud neutral, which enables customers to connect directly to all
major PRC telecommunications carriers and to the largest PRC and
global cloud service providers hosted by GDS in many of its
facilities. The company has an 18-year track record of service
delivery, successfully fulfilling the requirements of some of the
largest and most demanding customers for outsourced data center
services in China. The company’s base of customers consists
predominantly of hyper-scale cloud service providers, large
internet companies, financial institutions, telecommunications and
IT service providers, and large domestic private sector and
multinational corporations.
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Investor RelationsMichael SchaferVice President, Capital
Markets & Investor
Relations972-350-0060investorrelations@cyrusone.com
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