GDS-SW has announced the execution of a definitive agreement with DayOne Data Centers Limited, a Singapore-based hyperscale data center platform in which GDS holds a minority equity investment. Under this agreement, DayOne will repurchase $385 million worth of its ordinary shares from GDS.

The repurchase price per ordinary share is identical to the price set in DayOne's recently announced Series C financing round, which raised over $2 billion through the issuance of convertible preferred shares. This share repurchase transaction will enable GDS to recover approximately 95% of its initial investment principal in DayOne, achieving an investment return of nearly 6.5 times.

Based on the valuation established by the new Series C issuance, GDS's remaining equity stake in DayOne is valued at over $2.2 billion. This valuation is equivalent to $11.18 per GDS American Depositary Share (ADS).

GDS currently intends to reallocate the proceeds from this share repurchase to invest in emerging business opportunities within its core operations in China that demonstrate significant potential for attractive returns.