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ChinaCache Terminated Agreement to Sell Data Center Assets
Apr. 27, 2018 08:35AM PST
Data InvestingChinaCache International Holdings (NASDAQ:CCIC), a leading total solutions provider of internet content and application delivery services in China announced that it has terminated the definitive agreement disclosed on March 6 to sell 79 per cent of company’s equity interest in ChinaCache Xin Run Technology to Tianjin Shuishan Technology. As quoted in the press release: Tianjin …
ChinaCache International Holdings (NASDAQ:CCIC), a leading total solutions provider of internet content and application delivery services in China announced that it has terminated the definitive agreement disclosed on March 6 to sell 79 per cent of company’s equity interest in ChinaCache Xin Run Technology to Tianjin Shuishan Technology.
As quoted in the press release:
Tianjin Shuishan Technology Co, Ltd., and Tianjin Dingsheng Zhida Technology Co., Ltd. are controlled by Mr. Song Wang, Chairman of the Board and Chief Executive Officer of ChinaCache. The termination of the Agreement was approved by the Company’s Audit Committee. None of the parties to the Agreement incurred a breakup fee due to the termination.
The Company’s strategic decision to terminate the Agreement was made in recognition of the perceived value of the assets in light of increasing market demand for Internet data center services and the belief that Xin Run can effectively be leveraged as part of the Company’s offering package to customers, thus better positioning the Company for long-term growth.
“China is rapidly adopting a digital lifestyle and Cloud and new data-intensive technologies, such as AI and big data analytics, are fanning demand for increasing Internet data center capacity and related services,” said Mr. Song Wang. “With ten Internet data centers in Beijing hosting capacity for 12,400 racks, Xin Run is growing quickly and capturing wide-spread demand from government agencies and businesses, including several leading Internet and Cloud service enterprises. Against this backdrop, we see a compelling value proposition as we offer customers total solution services, comprised of our Internet data centers, Internet and Cloud exchange centers and our extensive content delivery network. We believe this three-layered structured network will provide an integrated and broad-base of operations from which we can capitalize on our strengths and deliver sustained shareholder value.”