GDS Announces Sale Of US$385 million DayOne Shares
Rhea-AI Summary
GDS (NASDAQ: GDS) announced on January 13, 2026 that it agreed to sell DayOne ordinary shares back to DayOne for US$385 million. The repurchase price matches DayOne’s Series C convertible preferred new issue price tied to a >US$2.0 billion raise.
GDS said the transaction will recycle about 95% of its principal in DayOne at an approximate 6.5x multiple of money. Following the Series C price, GDS’s remaining DayOne stake is implied to be worth over US$2.2 billion, or about US$11.18 per GDS ADS. GDS intends to redeploy proceeds into new opportunities in its core China data-center business.
Positive
- Proceeds of US$385 million to be redeployed into core China business
- Recovered ~95% of principal invested in DayOne
- Realized ~6.5x multiple of money on repurchased stake
- Remaining DayOne stake implied at >US$2.2 billion (~US$11.18/ADS)
Negative
- GDS reduces minority ownership in DayOne by the sold stake
- Future upside in the sold portion of DayOne is foregone at Series C price
News Market Reaction
On the day this news was published, GDS declined 3.77%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
GDS gained 7.4% while key IT services peers were mixed: KD (+0.89%), EPAM (+0.36%) versus EXLS (-0.57%), G (-1.81%), PSN (-1.27%). The move appears stock-specific rather than sector-driven.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 19 | Q3 2025 earnings | Positive | +2.5% | Strong revenue growth and swing to net income with solid EBITDA margins. |
| Nov 05 | Earnings call notice | Neutral | +3.5% | Scheduled Q3 2025 results release and investor conference call details. |
| Aug 20 | Q2 2025 earnings | Positive | +7.3% | Double‑digit revenue growth with sharply narrowed net loss and C‑REIT IPO. |
| Aug 14 | DayOne project news | Positive | -6.1% | DayOne announced a major EUR 1.2B hyperscale campus investment in Finland. |
| Aug 06 | Earnings call notice | Neutral | +0.3% | Announcement of Q2 2025 earnings release timing and conference call. |
Earnings-related updates have generally seen positive price reactions, while DayOne project news previously coincided with a negative move.
This announcement follows a period of improving fundamentals and capital markets activity. In Q2 2025 and Q3 2025, GDS reported double‑digit revenue growth and a swing to net income of RMB728.6M. The company also completed a China C‑REIT IPO, raising significant proceeds and reducing capex guidance. Earlier, DayOne announced a large EUR 1.2B Finland campus investment, which coincided with a share price decline. Today’s monetization of the DayOne stake at a high multiple builds on that strategic relationship while reinforcing GDS’s core China focus.
Market Pulse Summary
This announcement highlights GDS’s capital recycling from its minority DayOne stake, with a US$385M share repurchase at a nearly 6.5x money multiple and about 95% of principal returned. The implied remaining interest is valued at over US$2.2B, or US$11.18 per ADS. In the context of recent earnings growth and prior REIT financing, investors may watch how effectively GDS reallocates these proceeds into its core China data center business.
Key Terms
hyperscale data center technical
AI-generated analysis. Not financial advice.
SHANGHAI, China, Jan. 13, 2026 (GLOBE NEWSWIRE) -- GDS Holdings Limited (“GDS Holdings”, “GDS” or the “Company”) (NASDAQ: GDS; HKEX: 9698), a leading developer and operator of high-performance data centers in China, today announced that it has entered into definitive agreements with DayOne Data Centers Limited (“DayOne”), a Singapore-headquartered hyperscale data center platform in which the Company holds a minority equity investment, pursuant to which DayOne will repurchase ordinary shares of DayOne from GDS to the value of US
The share repurchase will enable GDS to recycle approximately
About GDS Holdings Limited
GDS Holdings Limited (NASDAQ: GDS; HKEX: 9698) is a leading developer and operator of high-performance data centers in China. The Company’s facilities are strategically located across the key hubs where demand for high-performance data center services is concentrated. The Company’s data centers have large net floor area, high power capacity, density and efficiency, and multiple redundancies across all critical systems. The Company is carrier and cloud-neutral, which enables its customers to access the major telecommunications networks, as well as the largest PRC and global public clouds, which are hosted in many of its facilities. The Company has a 25-year track record of service delivery, successfully fulfilling the requirements of some of the largest and most demanding customers for outsourced data center services in China. The Company’s customer base consists predominantly of hyperscale cloud service providers, large internet companies, financial institutions, telecommunications carriers, IT service providers, and large domestic private sector and multinational corporations. The Company also holds a minority equity interest in DayOne Data Centers Limited, a Singapore-headquartered hyperscale data center platform.
For investor and media inquiries, please contact:
GDS Holdings Limited
Laura Chen
Phone: +86 (21) 2029-2203
Email: ir@gds-services.com
Piacente Financial Communications
Ross Warner
Phone: +86 (10) 6508-0677
Email: GDS@tpg-ir.com
Brandi Piacente
Phone: +1 (212) 481-2050
Email: GDS@tpg-ir.com
GDS Holdings Limited
FAQ
What did GDS (NASDAQ: GDS) announce on January 13, 2026 about DayOne?
How much cash will GDS receive from the DayOne share repurchase?
What return did GDS report on its DayOne investment in this transaction?
What is the implied value of GDS’s remaining DayOne stake after the Series C pricing?
How does GDS plan to use the proceeds from the DayOne sale?
