China Ping An Insurance Overseas, a subsidiary of China’s largest insurer Ping An Insurance Group, has announced a $150-million equity investment in GDS Holdings, a developer and operator of high-performance data centres, according to an official announcement.
The investment will be in the form of convertible preferred shares. GDS will use the proceeds from the investment to fund the expansion of its data centre capacity and for general corporate purposes.
“Over the past 6 years, Ping An has built a fruitful and longstanding relationship with GDS, and we have witnessed their tremendous success in becoming a prominent franchise in the data center industry,” said Ping An Overseas Holdings chairman and CEO Hoi Tung.
“Ping An Overseas Holdings looks forward to further expanding our partnership with GDS in areas such as financing and real estate,” he added.
DLA Piper LLP served as legal counsel to Ping An Overseas Holdings. JP Morgan acted as sole placement agent to GDS in connection with the private placement and Simpson Thacher & Bartlett LLP served as legal counsel.
Ping An recently announced its expansion into Indonesia’s fintech market with the launch of its subsidiary OneConnect in Southeast Asia’s largest market.
The insurer in February was also said to be gearing up for an initial public offering of its OneConnect unit that could value the financial management portal at about $8 billion.