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GDS Announces Sale Of US$385 million DayOne Shares

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SHANGHAI, China, Jan. 13, 2026 (GLOBE NEWSWIRE) -- GDS Holdings Limited (“GDS Holdings”, “GDS” or th...

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AI Summary

GDS to sell $385 million shares of DayOne back to DayOne. Repurchase enables GDS to recycle 95% of its principal at 6.5x multiple. Remaining equity in DayOne valued at over $2.2 billion. GDS plans to invest repurchase proceeds in core business growth.

Sentiment Rationale

The significant share repurchase at a high multiple suggests strong financial health and growth potential, akin to past successful investments across tech sectors that led to stock appreciation.

Trading Thesis

Investment and strategic growth initiatives are focused on long-term gains, similar to past strategic reallocations by GDS that fostered sustained business expansion.

Market-Moving

  • GDS to sell $385 million shares of DayOne back to DayOne.
  • Repurchase enables GDS to recycle 95% of its principal at 6.5x multiple.
  • Remaining equity in DayOne valued at over $2.2 billion.

Key Facts

  • GDS to sell $385 million shares of DayOne back to DayOne.
  • Repurchase enables GDS to recycle 95% of its principal at 6.5x multiple.
  • Remaining equity in DayOne valued at over $2.2 billion.
  • GDS plans to invest repurchase proceeds in core business growth.

Companies Mentioned

  • AMZN (AMZN)
  • IBM (IBM)
  • DBT (DBT)
  • CQP (CQP)

Corporate Developments

The article outlines a major financial decision and investment shift that could dramatically impact GDS's future, reinforcing market confidence and indicating strong operational strategy.

GDS Holdings Limited Sells US$385 Million in DayOne Shares

Shanghai, China, January 13, 2026 – GDS Holdings Limited (“GDS”, NASDAQ: GDS; HKEX: 9698), a premier developer and operator of high-performance data centers in China, has announced a significant financial move. The company has entered into definitive agreements with DayOne Data Centers Limited ("DayOne"), a leading hyperscale data center platform based in Singapore, to repurchase its ordinary shares valued at US$385 million.

Details of the Share Repurchase Agreement

In accordance with the newly established agreements, DayOne will buy back shares from GDS at a price consistent with its recently announced Series C convertible preferred share issue, which totals over US$2.0 billion. This strategic share repurchase allows GDS to recover approximately 95% of its principal investment in DayOne, yielding nearly 6.5 times its investment. The current valuation of GDS's remaining equity interest in DayOne, as inferred from the Series C issue, exceeds US$2.2 billion, translating to about US$11.18 per GDS American Depositary Share.

Strategic Implications for GDS

GDS is poised to reinvest the proceeds from this notable share repurchase into new business ventures that offer attractive return potential within its core operations in China. This decision reflects the company's ongoing commitment to enhancing shareholder value and pursuing robust growth opportunities in a rapidly evolving market.

About GDS Holdings Limited

GDS Holdings Limited is a recognized leader in the management and development of high-performance data centers throughout China. The company's facilities are strategically located in essential hubs where demand for data services is high, featuring:

  • Large net floor areas
  • High power capacity with density and efficiency
  • Multiple redundancies across all critical systems
  • Carrier and cloud neutrality

With a solid track record spanning over 25 years, GDS has served some of the largest and most demanding clients, including hyperscale cloud service providers, major internet firms, financial institutions, and multinational corporations.

Contact Information

For further information or media inquiries, you can reach out to:

  • GDS Holdings Limited
    Laura Chen
    Phone: +86 (21) 2029-2203
    Email: ir@gds-services.com
  • Piacente Financial Communications
    Ross Warner
    Phone: +86 (10) 6508-0677
    Email: GDS@tpg-ir.com
  • Brandi Piacente
    Phone: +1 (212) 481-2050
    Email: GDS@tpg-ir.com

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