GDS Holdings agrees to sell shares to DayOne Data Centers for $385 million, recycling investments for future opportunities.
Quiver AI Summary
GDS Holdings Limited, a prominent data center operator in China, announced a substantial share repurchase agreement with DayOne Data Centers Limited, a hyperscale data center platform in which GDS holds a minority stake. The repurchase, valued at $385 million, allows GDS to recover approximately 95% of its original investment in DayOne at a 6.5 times return. The price per share in this transaction aligns with DayOne's recent Series C convertible preferred share issuance of over $2 billion. Following this repurchase, GDS aims to reinvest the proceeds into new business opportunities in China, leveraging their strategic position in high-performance data center services.
Potential Positives
- GDS Holdings is set to receive US$385 million from the repurchase of shares by DayOne, allowing it to recycle approximately 95% of its principal investment at a nearly 6.5 times return.
- The remaining equity interest in DayOne, valued at over US$2.2 billion, significantly enhances GDS's overall asset value and reflects positively on its investment strategy.
- The company plans to reinvest the proceeds into new business opportunities in its core sector, indicating a proactive approach to growth and potential for increased profitability.
Potential Negatives
- GDS Holdings has opted to sell a significant portion of its investment in DayOne Data Centers, indicating potential challenges in its investment strategy or market conditions.
- The decision to recycle capital from DayOne may reflect a conservative shift in GDS's business approach, suggesting possible difficulties in generating returns from its core operations.
- The reliance on a repurchase agreement with a minority partner may raise concerns about GDS's influence and control within strategic partnerships.
FAQ
What is the recent announcement from GDS Holdings?
GDS Holdings announced a share repurchase agreement with DayOne for US$385 million, recycling 95% of its investment.
How does the DayOne share repurchase benefit GDS?
The repurchase allows GDS to recycle its investment at a nearly 6.5 times multiple of money, enhancing its financial position.
What will GDS do with the proceeds from the share repurchase?
GDS intends to reallocate the proceeds to invest in new business opportunities with high return potential in China.
What is the current value of GDS's remaining interest in DayOne?
GDS's remaining equity interest in DayOne is valued at over US$2.2 billion or US$11.18 per GDS American Depositary Share.
Who are GDS Holdings' primary customers?
GDS's customer base includes hyperscale cloud providers, large internet companies, financial institutions, and telecommunications carriers.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$GDS Hedge Fund Activity
We have seen 134 institutional investors add shares of $GDS stock to their portfolio, and 72 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- SINGAPORE TECHNOLOGIES TELEMEDIA PTE LTD removed 6,000,000 shares (-37.9%) from their portfolio in Q3 2025, for an estimated $232,200,000
- ASPEX MANAGEMENT (HK) LTD removed 4,406,949 shares (-100.0%) from their portfolio in Q3 2025, for an estimated $170,548,926
- GOLDMAN SACHS GROUP INC removed 1,873,105 shares (-67.0%) from their portfolio in Q3 2025, for an estimated $72,489,163
- MORGAN STANLEY removed 1,579,338 shares (-57.8%) from their portfolio in Q3 2025, for an estimated $61,120,380
- JANE STREET GROUP, LLC added 1,384,624 shares (+171.9%) to their portfolio in Q3 2025, for an estimated $53,584,948
- CARRHAE CAPITAL LLP added 1,231,375 shares (+295.4%) to their portfolio in Q3 2025, for an estimated $47,654,212
- MASSACHUSETTS FINANCIAL SERVICES CO /MA/ removed 1,204,006 shares (-100.0%) from their portfolio in Q3 2025, for an estimated $46,595,032
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
$GDS Analyst Ratings
Wall Street analysts have issued reports on $GDS in the last several months. We have seen 5 firms issue buy ratings on the stock, and 0 firms issue sell ratings.
Here are some recent analyst ratings:
- TD Cowen issued a "Buy" rating on 11/20/2025
- Macquarie issued a "Outperform" rating on 11/06/2025
- B of A Securities issued a "Buy" rating on 08/22/2025
- JMP Securities issued a "Market Outperform" rating on 08/21/2025
- RBC Capital issued a "Outperform" rating on 08/12/2025
To track analyst ratings and price targets for $GDS, check out Quiver Quantitative's $GDS forecast page.
$GDS Price Targets
Multiple analysts have issued price targets for $GDS recently. We have seen 4 analysts offer price targets for $GDS in the last 6 months, with a median target of $49.0.
Here are some recent targets:
- Michael Elias from TD Cowen set a target price of $37.0 on 11/20/2025
- Daley Li from B of A Securities set a target price of $50.6 on 08/22/2025
- Greg P. Miller from JMP Securities set a target price of $50.0 on 08/21/2025
- Jonathan Atkin from RBC Capital set a target price of $48.0 on 08/12/2025
Full Release
SHANGHAI, China, Jan. 13, 2026 (GLOBE NEWSWIRE) -- GDS Holdings Limited (“GDS Holdings”, “GDS” or the “Company”) (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high-performance data centers in China, today announced that it has entered into definitive agreements with DayOne Data Centers Limited (“DayOne”), a Singapore-headquartered hyperscale data center platform in which the Company holds a minority equity investment, pursuant to which DayOne will repurchase ordinary shares of DayOne from GDS to the value of US$385 million. The share repurchase price per ordinary share is the same as the price for DayOne’s recently announced Series C convertible preferred share new issue of over US$2.0 billion.
The share repurchase will enable GDS to recycle approximately 95% of its principal invested in DayOne at a nearly 6.5 times multiple of money. The value of GDS’s remaining equity interest in DayOne implied by the Series C new issue price is over US$2.2 billion, equivalent to US$11.18 per GDS American Depositary Share. GDS currently intends to reallocate the proceeds of the share repurchase to invest in compelling new business opportunities with attractive return potential in its core business in China.
About GDS Holdings Limited
GDS Holdings Limited (NASDAQ: GDS; HKEX: 9698) is a leading developer and operator of high-performance data centers in China. The Company’s facilities are strategically located across the key 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 redundancies across all critical systems. The Company is carrier and cloud-neutral, which enables its customers to access the major telecommunications networks, as well as the largest PRC and global public clouds, which are hosted in many of its facilities. The Company has a 25-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 customer base consists predominantly of hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, and large domestic private sector and multinational corporations. The Company also holds a minority equity interest in DayOne Data Centers Limited, a Singapore-headquartered hyperscale data center platform.
For investor and media inquiries, please contact:
GDS Holdings Limited
Laura Chen
Phone: +86 (21) 2029-2203
Email:
[email protected]
Piacente Financial Communications
Ross Warner
Phone: +86 (10) 6508-0677
Email:
[email protected]
Brandi Piacente
Phone: +1 (212) 481-2050
Email:
[email protected]
GDS Holdings Limited
