Equinix Considers Minority Stake Sale in Hong Kong Data Center Assets
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On Fri, 12 Jul, 2:28 PM UTC
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4 Sources
[1]
Data centre operator Equinix mulls minority stake sale in Hong Kong assets, sources say
The California-headquartered company could sell 25% in its Hong Kong data centres, one of the people said. Without commenting on the possible minority stake sale, an Equinix spokesperson said that the company was fully committed to its Hong Kong business. "Equinix Hong Kong serves as a key interconnection hub for our global customer base. We will continue to invest in future growth to ensure our customers can deploy in Hong Kong with confidence," the spokesperson said. Equinix's plan comes as global private equity investors, asset managers and technology companies are readying for billions of dollars worth of deals and investments linked to data centres in Asia, as the artificial intelligence boom fuels demand for digital infrastructure. Equinix runs five data centres in Hong Kong, serving hundreds of businesses from a wide range sectors, including more than 200 cloud and IT services and over 105 network services, its website showed. Founded in 1998 in Silicon Valley, Equinix has expanded globally and now owns around 260 data centres globally, including nine markets in Asia Pacific, its website and 2023 annual report showed. Its top partners include AWS, Google Cloud and Oracle. The Nasdaq-listed company has a market value of $75.7 billion, according to LSEG data, and its shares are down 0.9% so far this year. In 2023, its net income rose to $968.98 million from $704.57 million a year ago, according to the annual report, while revenue rose to $8.18 billion in from $7.26. (Reporting by Kane Wu in Hong Kong and Yantoultra Ngui in Singapore; Editing by Sumeet Chatterjee and Louise Heavens)
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Data centre operator Equinix mulls minority stake sale in Hong Kong assets, sources say
HONG KONG/SINGAPORE, July 12 (Reuters) - Global data centre operator Equinix is considering a sale of a minority stake in its Hong Kong facilities, valuing the assets at around $2 billion, two sources said, in a move to capitalise on the boom in demand from artificial intelligence. Equinix has hired Citigroup to run the sale, the sources said, who have direct knowledge of the matter but declined to be named as the information is confidential. The California-headquartered company could sell 25% in its Hong Kong data centres, one of the people said. Without commenting on the possible minority stake sale, an Equinix spokesperson said that the company was fully committed to its Hong Kong business. "Equinix Hong Kong serves as a key interconnection hub for our global customer base. We will continue to invest in future growth to ensure our customers can deploy in Hong Kong with confidence," the spokesperson said. Citigroup declined to comment. Equinix's plan comes as global private equity investors, asset managers and technology companies are readying for billions of dollars worth of deals and investments linked to data centres in Asia, as the artificial intelligence boom fuels demand for digital infrastructure. Equinix runs five data centres in Hong Kong, serving hundreds of businesses from a wide range sectors, including more than 200 cloud and IT services and over 105 network services, its website showed. Founded in 1998 in Silicon Valley, Equinix has expanded globally and now owns around 260 data centres globally, including nine markets in Asia Pacific, its website and 2023 annual report showed. Its top partners include AWS, Google Cloud and Oracle. The Nasdaq-listed company has a market value of $75.7 billion, according to LSEG data, and its shares are down 0.9% so far this year. In 2023, its net income rose to $968.98 million from $704.57 million a year ago, according to the annual report, while revenue rose to $8.18 billion in from $7.26. (Reporting by Kane Wu in Hong Kong and Yantoultra Ngui in Singapore; Editing by Sumeet Chatterjee and Louise Heavens)
[3]
Data Centre Operator Equinix Mulls Minority Stake Sale in Hong Kong Assets, Sources Say
HONG KONG/SINGAPORE (Reuters) - Global data centre operator Equinix is considering a sale of a minority stake in its Hong Kong facilities, valuing the assets at around $2 billion, two sources said, in a move to capitalise on the boom in demand from artificial intelligence. Equinix has hired Citigroup to run the sale, the sources said, who have direct knowledge of the matter but declined to be named as the information is confidential. The California-headquartered company could sell 25% in its Hong Kong data centres, one of the people said. Without commenting on the possible minority stake sale, an Equinix spokesperson said that the company was fully committed to its Hong Kong business. "Equinix Hong Kong serves as a key interconnection hub for our global customer base. We will continue to invest in future growth to ensure our customers can deploy in Hong Kong with confidence," the spokesperson said. Citigroup declined to comment. Equinix's plan comes as global private equity investors, asset managers and technology companies are readying for billions of dollars worth of deals and investments linked to data centres in Asia, as the artificial intelligence boom fuels demand for digital infrastructure. Equinix runs five data centres in Hong Kong, serving hundreds of businesses from a wide range sectors, including more than 200 cloud and IT services and over 105 network services, its website showed. Founded in 1998 in Silicon Valley, Equinix has expanded globally and now owns around 260 data centres globally, including nine markets in Asia Pacific, its website and 2023 annual report showed. Its top partners include AWS, Google Cloud and Oracle. The Nasdaq-listed company has a market value of $75.7 billion, according to LSEG data, and its shares are down 0.9% so far this year. In 2023, its net income rose to $968.98 million from $704.57 million a year ago, according to the annual report, while revenue rose to $8.18 billion in from $7.26. (Reporting by Kane Wu in Hong Kong and Yantoultra Ngui in Singapore; Editing by Sumeet Chatterjee and Louise Heavens)
[4]
Data centre operator Equinix mulls minority stake sale in Hong Kong assets - ET Telecom
By Kane Wu and Yantoultra Ngui HONG KONG/SINGAPORE: Global data centre operator Equinix is considering a sale of a minority stake in its Hong Kong facilities, valuing the assets at around $2 billion, two sources said, in a move to capitalise on the boom in demand from artificial intelligence. Equinix has hired Citigroup to run the sale, the sources said, who have direct knowledge of the matter but declined to be named as the information is confidential. The California-headquartered company could sell 25% in its Hong Kong data centres, one of the people said. Without commenting on the possible minority stake sale, an Equinix spokesperson said that the company was fully committed to its Hong Kong business. "Equinix Hong Kong serves as a key interconnection hub for our global customer base. We will continue to invest in future growth to ensure our customers can deploy in Hong Kong with confidence," the spokesperson said. Citigroup declined to comment. Equinix's plan comes as global private equity investors, asset managers and technology companies are readying for billions of dollars worth of deals and investments linked to data centres in Asia, as the artificial intelligence boom fuels demand for digital infrastructure. Equinix runs five data centres in Hong Kong, serving hundreds of businesses from a wide range sectors, including more than 200 cloud and IT services and over 105 network services, its website showed. Founded in 1998 in Silicon Valley, Equinix has expanded globally and now owns around 260 data centres globally, including nine markets in Asia Pacific, its website and 2023 annual report showed. Its top partners include AWS, Google Cloud and Oracle. The Nasdaq-listed company has a market value of $75.7 billion, according to LSEG data, and its shares are down 0.9% so far this year. In 2023, its net income rose to $968.98 million from $704.57 million a year ago, according to the annual report, while revenue rose to $8.18 billion in from $7.26.
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Equinix, a global data center operator, is exploring the possibility of selling a minority stake in its Hong Kong assets. The potential deal could value the assets at over $1 billion and is part of Equinix's strategy to expand in the Asia-Pacific region.
Equinix Explores Minority Stake Sale in Hong Kong
Equinix Inc., a leading global digital infrastructure company, is considering the sale of a minority stake in its Hong Kong data center assets. This strategic move could potentially value the assets at over $1 billion, according to sources familiar with the matter 1.
Motivations Behind the Potential Sale
The California-based company is exploring this option as part of its efforts to expand its footprint in the Asia-Pacific region. By selling a minority stake, Equinix aims to raise capital for future investments while maintaining operational control of its Hong Kong facilities 2.
Current Status of the Deal
Equinix is reportedly in the early stages of gauging interest from potential buyers, including other data center operators and infrastructure funds. The company has engaged with financial advisers to assist in the process, although the plans are still in preliminary stages and subject to change 3.
Equinix's Presence in Hong Kong
The company currently operates five data centers in Hong Kong, which serve as critical hubs for connecting the Asia-Pacific region to the rest of the world. These facilities play a crucial role in supporting Hong Kong's position as a key financial and technological center in Asia 4.
Market Context and Industry Trends
This potential move by Equinix comes amid growing interest in data center assets across Asia. The increasing demand for cloud services and digital infrastructure has made data centers an attractive investment opportunity for both strategic and financial investors. Equinix's consideration of a minority stake sale aligns with broader industry trends of operators seeking to monetize their assets while maintaining operational control 1.
Equinix's Global Footprint and Strategy
As a global player in the data center industry, Equinix operates over 240 data centers across 71 metropolitan areas worldwide. The company has been actively expanding its presence in key markets, with a particular focus on the Asia-Pacific region. This potential stake sale in Hong Kong assets could provide Equinix with additional capital to fuel its growth strategy and strengthen its position in the competitive data center market 2.
Reference
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U.S. News & World Report
|Data Centre Operator Equinix Mulls Minority Stake Sale in Hong Kong Assets, Sources Say
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