Global Switch addresses £8bn sale speculation

Global Switch addresses £8bn sale speculation

Global Switch Hong Kong.jpg

Jiangsu Shagang Group Co., Ltd, Global Switch’s controlling shareholder has commented on reports regarding the appointment of investment banks to conduct a strategic review and invite potential offers for the company.

This comes as numerous reports said Global Switch is exploring a sale that could value the company at £8 billion.

Bloomberg reported that people with knowledge of the matter said the sale could potentially extend the list of major overseas investment disposals by Chinese investors.

In a written statement, the company said it remains focused on pursuing the reorganisation of its shareholdings by way of a Material Asset Restructuring transaction, as previously announced on 24th November 2020.

“Upon completion of the proposed reorganisation the company’s 51% direct shareholder, Elegant Jubilee Limited, would become a wholly-owned indirect subsidiary of Jiangsu Shagang Co., Ltd, a Shenzhen Stock Exchange quoted subsidiary of Shagang,” added the data centre operator.

“The company understands that the 49% minority shareholders in Global Switch, including Shagang, will continue to evaluate their options to create liquidity for their stakes and at the same time potentially introduce international strategic investors to the company.

“This evaluation remains at a preliminary stage and any transaction for a minority stake is speculative.”

In November 2020, Jiangsu Shagang Group advised Global Switch of its intention to pursue a reorganisation of the shareholdings in Global Switch.

The reorganisation is set to provide liquidity for certain of Global Switch’s current investors, via JS Co.’s listing in Shenzhen.

Shagang also confirmed to the company that there will be no changes to the strategic direction, management or financial and operational policies of Global Switch.

Data Economy reached out to Global Switch for further clarity, to which the company is yet to reply.

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