D’Oasis, the controlling shareholder of GDS Global , has entered into a placement agreement with SAC Capital, the placement agent, to sell up to 56.5 million shares in GDS Global. The shares represent about 50.45% of the total issued share capital in the company.
Under the agreement dated Sept 6, D’Oasis has agreed to sell the shares via a placement while SAC Capital has agreed, on a “best endeavours basis”, to procure the purchase of the shares.
D’Oasis is seeking to sell the shares at 6 cents apiece, or $3.39 million in total. The placement price represents a premium of 100.0% to the volume weighted average price (VWAP) of 3 cents per share for the trades done on Aug 24. Aug 24 is the full market day on which GDS’s shares were traded prior to the date of the signing of the placement agreement and prior to the trading halt called by the company.
As at Sept 6, D’Oasis holds 88.5 million ordinary shares in GDS Global, which amounts to 79.02% of the company’s total share capital.
Wong Lok Yung, GDS Global’s chairman, executive director and CEO, is directly interested in 90% of the shares in D’Oasis. He is also deemed to have an interest in D’Oasis’ remaining 10% stake.
Should all 56.5 million shares in GDS Global be sold, D’Oasis will have a remaining interest in 32 million shares in GDS Global, or a stake of about 28.57%. It will still remain as a controlling shareholder of the company.
According to GDS, Wong, through D’Oasis, is selling part of his stake due to his age and the condition of his health. He may also consider disposing of the rest of his shares in future.
In the meantime, he will remain as the company’s chairman, executive director and CEO until a “decision and appropriate succession plans” have been made by the company’s board.
Shares in GDS Global last traded at 3 cents.