Founder of Century Interlink (VNET.US) withdraws the private offer

China Data Center Services Inc. (VNET.US) announced on Thursday that its founder Chen Sheng withdrew his proposal to take the company private. Chen Sheng had proposed to buy all outstanding shares of VNET at a price of $8.2 per ADS in September 2022.

VNET said on Thursday that, given Chen Sheng’s withdrawal of the private placement proposal and the lack of substantial progress on any other potential private placement or similar transaction (including the preliminary non-binding proposal received in April 2022 from Hanergy Capital Group and Industrial Bank Co., Ltd. Shanghai Branch to acquire all outstanding shares of the Company), the Special Committee decided to cease further evaluation of any potential transaction and recommended to the Board of Directors to dissolve the Special Committee. The Board approved the dissolution of the Special Committee accordingly.

Chen Sheng said: “I have withdrawn the private placement proposal because I believe it is in the best long-term interests of the Company to maintain its listing status in the current market environment. I am confident in VNET’s growth potential and will continue to work to promote the high-quality and sustainable development of the Group.”

As of the time of publication, VNET shares were trading down 2.22% at $2.20.