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Shares of a major Chinese energy company jumped over 8% during trading hours after announcing plans to invest approximately CNY1.1 billion (around USD159.2 million) in a joint effort to acquire a controlling interest in a significant data center operator.
The stock closed up 6.5%, reaching CNY16.21 (roughly USD2.40). Since revealing its acquisition plans in early February, the company’s stock has nearly tripled in value and is approaching its highest level since November 2015. Overall market indices declined today amid geopolitical uncertainties in the Middle East, with the Shenzhen Composite Index ending down 3.8%.
The company, based in Zhengzhou, stated after the previous trading session that it will participate in a capital increase for a local computing power technology firm alongside its main shareholder, Henan Investment Group. Post-transaction, Henan Investment will hold approximately 57.7%, with the company owning the remaining 42.3%.
The data center firm plans to collaborate with external investors to invest roughly CNY9.4 billion in acquiring a 91.2% stake in a Zhengzhou-based data center operator. Upon completion, the company will hold at least a 55% ownership stake in the target.
This data center operator manages ultra-large-scale, independent facilities in Hebei Province. Its primary revenue sources include customized data center solutions, server hosting, and maintenance services. The company operates 36 branches across North China’s Hebei region.
Between January and October last year, the company reported revenues of CNY1.4 billion and a net profit of CNY96.9 million (around USD14.1 million). With server deployment still expanding, there is potential for further profit growth.
The energy company noted that data center operators are valuable clients, and this investment will promote more efficient and coordinated growth between its core power generation operations and load-side services.
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