London: Global Switch Holdings Ltd’s Chinese owners are considering carving up the data centre group in the hopes of reviving a sale that could fetch about US$6bil people with knowledge of the matter say.
The UK company’s shareholders have been discussing a potential move to sell Global Switch operations in Europe and Asia Pacific separately to different buyers, the people said, asking not to be identified because the information is private.
Each division could be valued at roughly US$3bil, according to the people. Splitting the London-based business may boost the likelihood of a deal getting done, since suitors had previously balked at the US$10bil asking price for the entire group and some were keen on only parts of the business, the people said.
Global Switch could also separate its Australia business from the European and Asian operations, some of the people said.
The company’s owners, who include Chinese steelmaker Jiangsu Shagang Group Co and Avic Trust Co, are discussing different options and could try to relaunch the process in the coming months, the people said.
Deliberations are ongoing, and there’s no certainty they will lead to a transaction.
Founded in 1998, Global Switch owns and operates 13 data centres across Europe and Asia-Pacific comprising about 428,000 sq m, according to its website.
Global Switch’s Chinese owners bought control of the group from British billionaire brothers David and Simon Reuben in a series of transactions starting in 2016. — Bloomberg
