The latest: Data center operator VNET Group Inc. (VNET.US) announced Tuesday its founder Chen Sheng has submitted an offer to acquire all of the company’s outstanding stock for $8.20 in cash per American depositary share (ADSs), or approximately US$1.3667 per ordinary share.

Looking up: The buyout price represents a major premium over the last ADS close of $4.69 before the offer. As helmsman of VNET, Chen’s successfully acquisition of all the company’s shares would also have a minimal impact on its operations.

Take Note: The company received a takeover bid from private equity firm Hina Group in April this year at a price of $8 per ADS. Chen’s latest offer of $8.20 is only 2.5% higher than that, which may not be enough to convince other shareholders to vote in favor.

Digging Deeper: As the weakest of China’s three overseas-listed data center operators and with the smallest market capitalization, VNET has made headlines in recent months as a potential acquisition target. In addition to Hina Group, South Korea’s MBK Partners and several other private equity firms were reportedly weighing bids for the company, though no new offer has been made so far. VNET fell from profitability to report a 377 million yuan ($54.4 million) loss in the second quarter of this year. Despite that, Chen’s takeover bid means he has likely found a financial backer willing to pay the premium required to take the company private for a price slightly higher than Hina Group’s bid.

Market Reaction: VNET shares jumped 20.7% to $5.66 in New York on Tuesday. But they still trade at the lower end of their 52-week range, and are still 30.9% below Chen’s bid.

Translation by Jony Ho

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