GDS Announces Sale Of US$385 million DayOne Shares

GDS (NASDAQ: GDS) announced on January 13, 2026 that it agreed to sell DayOne ordinary shares back to DayOne for US$385 million.

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

Argus Jan 13 session

-3.77% close to close Open Argus

Details

News Market Reaction – GDS

On Jan 13, the day this news came out, GDS closed 3.77% below the previous close.

Data tracked by StockTitan Argus for the Jan 13 session.

Market Context

This announcement highlights GDS’s capital recycling from its minority DayOne stake, with a US$385M ...

Analysis

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 Figures

DayOne share repurchase: US$385 million Series C new issue: Over US$2.0 billion Capital recycled: Approximately 95% +3 more

DayOne share repurchase

US$385 million

Value of DayOne ordinary shares repurchased from GDS

Series C new issue

Over US$2.0 billion

DayOne Series C convertible preferred share issuance size

Capital recycled

Approximately 95%

Portion of GDS’s principal in DayOne recycled via repurchase

Money multiple

Nearly 6.5x

Multiple of money on GDS’s recycled DayOne investment

Remaining DayOne stake

Over US$2.2 billion

Implied value of GDS’s remaining DayOne equity interest

Implied value per ADS

US$11.18 per ADS

Implied DayOne stake value per GDS American Depositary Share

Historical Context

5 past events · Latest: Nov 19

5 events

1. Nov 19

   Q3 2025 earnings

   24h Move

   +2.5%

   Strong revenue growth and swing to net income with solid EBITDA margins.

2. Nov 05

   Earnings call notice

   24h Move

   +3.5%

   Scheduled Q3 2025 results release and investor conference call details.

3. Aug 20

   Q2 2025 earnings

   24h Move

   +7.3%

   Double‑digit revenue growth with sharply narrowed net loss and C‑REIT IPO.

4. Aug 14

   DayOne project news

   24h Move

   -6.1%

   DayOne announced a major EUR 1.2B hyperscale campus investment in Finland.

5. Aug 06

   Earnings call notice

   24h Move

   +0.3%

   Announcement of Q2 2025 earnings release timing and conference call.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

hyperscale data center, convertible preferred share, american depositary share

3 terms

hyperscale data center technical

"a Singapore-headquartered hyperscale data center platform in which the Company holds"

A hyperscale data center is a very large, highly automated facility designed to house thousands of servers and networking devices that can quickly expand to handle massive computing and storage needs. For investors it matters because these centers support cloud services, streaming and AI workloads that drive steady, high-volume revenue; owning or serving hyperscale capacity signals scale, lower per-unit costs and exposure to fast-growing digital demand.

convertible preferred share financial

"Series C convertible preferred share new issue of over US$2.0 billion."

A convertible preferred share is a type of investment that acts like a steady-income claim on a company (it usually pays fixed dividends and ranks ahead of common stock if assets are liquidated) but can be swapped for common shares later. Investors care because it blends downside protection with potential upside—like holding a coupon-bearing ticket that can be exchanged for regular stock if the company does well—so it affects income, ownership percentage, and dilution.

american depositary share financial

"equivalent to US$11.18 per GDS American Depositary Share."

An American Depositary Share (ADS) is a U.S.-listed certificate that represents a specified number of shares in a foreign company, held by a custodian bank; it works like a receipt that allows U.S. investors to buy and trade foreign equity on American exchanges without dealing with another country’s markets. Investors care because ADSs make foreign stocks easier to access, improve liquidity and settlement in dollars, and can affect dividend payments, voting rights and regulatory oversight compared with buying the underlying foreign shares directly.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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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$385 million. The share repurchase price per ordinary share is the same as the price for DayOne’s recently announced Series C convertible preferred share new issue of over US$2.0 billion.

The share repurchase will enable GDS to recycle approximately 95% of its principal invested in DayOne at a nearly 6.5 times multiple of money. The value of GDS’s remaining equity interest in DayOne implied by the Series C new issue price is over US$2.2 billion, equivalent to US$11.18 per GDS American Depositary Share. GDS currently intends to reallocate the proceeds of the share repurchase to invest in compelling new business opportunities with attractive return potential in its core business in China.

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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did GDS (NASDAQ: GDS) announce on January 13, 2026 about DayOne?

GDS agreed to sell DayOne ordinary shares back to DayOne for US$385 million, matching DayOne’s Series C price.

How much cash will GDS receive from the DayOne share repurchase?

GDS will receive US$385 million from the repurchase.

What return did GDS report on its DayOne investment in this transaction?

GDS said the repurchase recycles ~95% of its principal at an approximately 6.5x multiple of money.

What is the implied value of GDS’s remaining DayOne stake after the Series C pricing?

The Series C price implies GDS’s remaining DayOne interest is worth over US$2.2 billion, or about US$11.18 per GDS ADS.

How does GDS plan to use the proceeds from the DayOne sale?

GDS intends to reallocate the proceeds to invest in compelling new business opportunities in its core China data-center operations.