BEIJING, July 11,
2024 /PRNewswire/ -- VNET Group, Inc. (Nasdaq: VNET)
("VNET" or the "Company"), a leading carrier- and cloud-neutral
internet data center services provider in China, today announced that the special
committee of the Company's board of directors (the "Special
Committee") received a letter dated July 10,
2024 from Mr. Josh Sheng Chen
("Mr. Chen"), Founder, Co-Chairperson and interim Chief Executive
Officer of VNET, stating that Mr. Chen had determined not to
proceed with his preliminary non-binding proposal dated
September 13, 2022 to acquire all of
the outstanding ordinary shares of the Company (the "Founder
Proposal") and the Founder Proposal was withdrawn with immediate
effect.
In light of Mr. Chen's withdrawal of the Founder Proposal and
the lack of substantive progress regarding any other potential
going-private or similar transaction of the Company (including with
respect to the unsolicited preliminary non-binding proposal
received from the Hina Group and Industrial Bank Co., Ltd.,
Shanghai Branch in April 2022 to acquire all outstanding shares of
the Company), the Special Committee has decided to cease any
further evaluation of any potential transaction at this time and
recommended that the board of directors dissolve the Special
Committee. The board of directors approved to dissolve the Special
Committee accordingly.
Mr. Chen commented, "I withdrew my privatization proposal as I
believe that maintaining VNET's listing status is better aligned
with the Company's long-term interests given current market
conditions. I remain confident in VNET's growth potential and will
continue to devote myself to its high-quality, sustainable
development. Looking ahead, guided by our entrepreneurial mission
for the next 25 years to bring green direct-current electricity
from AIDC to millions of households, VNET will continue to leverage
its core strengths to capture AI-driven demand, drive industry-wide
progress and upgrades in the AGI era, and inject new vitality into
China's digital economy."
Mr. Jianbiao Zhu, Chief Executive
Officer of Shandong Hi-Speed Holdings Group Limited ("SDHG") and
Co-Chairperson of VNET, said, "We are optimistic about VNET's
future as a listed company and will continue to strengthen our
cooperation for mutual success. We are pleased to contribute SDHG's
green energy resources to accelerate VNET's green, low-carbon
transformation for its IDC business. Together, we are building an
AI-powered, green infrastructure platform that will comprehensively
cover high-performance computing scenarios such as large language
model training, bolstering VNET's leading position in China's IDC industry."
About VNET
VNET Group, Inc. is a leading carrier- and cloud-neutral
internet data center services provider
in China. VNET provides hosting and related
services, including IDC services, cloud services, and business VPN
services to improve the reliability, security, and speed of its
customers' internet infrastructure. Customers may locate their
servers and equipment in VNET's data centers and connect to
China's internet backbone.
VNET operates in more than 30 cities throughout China,
servicing a diversified and loyal base of over 7,500 hosting and
related enterprise customers that span numerous industries ranging
from internet companies to government entities and blue-chip
enterprises to small- to mid-sized enterprises.
Safe Harbor Statement
This announcement contains forward-looking statements. These
forward-looking statements are made under the "safe harbor"
provisions of the U.S. Private Securities Litigation
Reform Act of 1995. These statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "target," "believes," "estimates" and similar
statements. Among other things, quotations from management in this
announcement as well as VNET's strategic and operational
plans contain forward-looking statements. VNET may also
make written or oral forward-looking statements in its reports
filed with, or furnished to, the U.S. Securities and Exchange
Commission, in its annual reports to shareholders, in press
releases and other written materials and in oral statements made by
its officers, directors or employees to third parties. Statements
that are not historical facts, including statements
about beliefs and expectations on the future performance of
VNET, are forward-looking statements. Forward-looking statements
involve inherent risks and uncertainties. A number of factors could
cause actual results to differ materially from those contained in
any forward-looking statement, including but not limited to the
following: VNET's goals and
strategies; VNET's liquidity
conditions; VNET's expansion plans; the expected growth
of the data center services market; expectations regarding demand
for, and market acceptance
of, VNET's services; VNET's expectations
regarding keeping and strengthening its relationships with
customers; VNET's plans to invest in research and
development to enhance its solution and service offerings; and
general economic and business conditions in the regions
where VNET provides solutions and services. Further
information regarding these and other risks is included
in VNET's reports filed with, or furnished to,
the U.S. Securities and Exchange Commission. All information
provided in this press release is as of the date of this press
release, and VNET undertakes no duty to update such
information, except as required under applicable law.
Investor Relations Contact:
Xinyuan Liu
Tel: +86 10 8456 2121
Email: ir@vnet.com
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SOURCE VNET Group, Inc.