21Vianet rises over 24% after announcing new strategic investor; CATL joins the game.

21Vianet rises over 24% after announcing new strategic investor; CATL joins the game.

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21Vianet announced the introduction of a strategic investor associated with CATL. After the completion of the transaction, the new shareholder will hold approximately 38.1% of the company’s shares.

According to a May 13 announcement by 21Vianet, buyers PJ Millennium I Limited and PJ Millennium II Limited will acquire up to around 650.4 million Class A ordinary shares from entities under Shandong Hi-Speed Holding Group at a purchase price of $1.4486 per share (equivalent to $8.6914 per ADS).

Both buyers are wholly owned subsidiaries of PJ Millennium Limited Partnership, whose general partner, Lochpine BG I GP Limited, is associated with CATL and is a non-controlling, non-consolidated affiliate of CATL.

After the transaction, the new strategic investor will deepen cooperation with 21Vianet in technology and supply chain. The parties will also sign an investor rights agreement and a voting and joint agreement to maintain the stability of the company’s control.

Josh Sheng Chen, founder, executive chairman, and interim CEO of 21Vianet, stated that the company will work with strategic partners to promote end-to-end innovation in the next generation of AI data center industry.

Boosted by the news, 21Vianet’s stock price surged over 24% on the day.

The sellers in this share transfer are Success Flow International Investment Limited and Choice Faith Group Holdings Limited, both of which are subsidiaries under Shandong Hi-Speed Holding Group Co., Ltd.

The buyer (CATL-related capital) will pay $1.4486 in cash per share, acquiring up to 650,424,192 Class A ordinary shares in total. Based on the 1,708,149,858 ordinary shares issued by 21Vianet as of March 31, 2026, after the transaction the buyer’s total shareholding ratio will be about 38.1%.

The transaction includes some flexible arrangements: according to the share purchase agreement, the seller, Choice Faith, may dispose of up to 195,127,260 Class A ordinary shares before closing, but if the buyer requests completion of all those shares by September 15, 2026 or earlier, this arrangement will not apply.

The overall transaction is expected to close in the fourth quarter of 2026, subject to approval at the Shandong Hi-Speed Holding Group shareholders' meeting and the satisfaction of other conditions.

Agreement Arrangements: Signing Voting and Joint Agreement, Maintaining Stability of Company Control

With the signing of the share purchase agreement, the buyers and 21Vianet have simultaneously signed an investor rights agreement, and with company founder Josh Sheng Chen and his affiliated investment entity, they have signed a voting and joint agreement; both agreements will take effect after closing.

According to the investor rights agreement, 21Vianet will grant the buyer certain investor rights, while the buyer must restrict transfers or dispositions of its shares within a specific period. The buyer also promises to take necessary actions to support the stability of company control.

In terms of voting arrangements, the buyer promises that, within a specific period, for the Class A ordinary shares acquired in this transaction, it will vote in accordance with the instructions from the founder’s side at company shareholders’ meetings.

This arrangement means that even though the new strategic investor holds close to 40% of the shares, effective control and leadership of the company will remain with the founder's side represented by Josh Sheng Chen.

Strategic Intention: Industrial Synergy in the AI Data Center Track

21Vianet is China’s leading carrier-neutral, cloud-neutral Internet data center service provider, operating data centers in over 30 cities nationwide, serving more than 7,000 enterprise clients, including Internet companies, government agencies, blue chips, and SMEs.

Josh Sheng Chen stated in the announcement that the company will deepen cooperation with the new strategic investor in technology and supply chain and jointly promote original end-to-end innovation in the next generation AI data center industry.

The stake taken by a CATL affiliate is widely interpreted as indicating potential cooperation between the two in key AI data center supply chain areas such as energy storage and power infrastructure.

As a leading global manufacturer of power and energy storage batteries, CATL’s capital entering a top Chinese data center operator reflects the overall trend of industrial capital accelerating deployment in the AI infrastructure sector.

For 21Vianet, introducing a strategic investor with industry background also helps enhance its resource acquisition capabilities and market competitiveness during the AI data center construction cycle.

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