Benzinga | Mar 24, 2021 03:59PM EDT

21Vianet To Acquire Class B Shares Worth $260M From Tuspark

* Chinese carrier-neutral and cloud-neutral data center services provider 21Vianet Group Inc (NASDAQ: VNET) inked an agreement to acquire 48.6 million shares of Tuspark Innovation Venture Limited for $260 million or $5.346 per share, or $32.076 per American depository share (ADS).

* The repurchase price signified a 5.9% discount to 21Vianet's Tuesday closing price of $34.1.

* 21Vianet will work with the cutting-edge research and development centers within Tsinghua's network and its ecosystem to pursue a net-zero-carbon IDC strategy. Together, they would build the next generation of large-scale green data centers.

* The director appointed by Tuspark would resign from the board, and the remaining Tuspark's Class B shares would be converted into the same number of Class A shares.

* Tuspark also agreed to sell and transfer additional shares to Beacon Capital Group Inc, a company affiliated with Chen, at the same price leading to Tuspark's retention of a small shareholding of less than 5% in 21Vianet.

* 21Vianet held $521.4 million in cash and equivalents as of December 31, 2020.

* Price action: VNET shares traded lower by 18.1% at $27.91 on the last check Wednesday.