CP Group’s data center unit wants $150 million in share sale

True Internet Data Center Co, part of the Charoen Pokphand Group conglomerate, is looking to raise about $150 million from a sale of a minority stake, according to those in the know.

The stake in the Bangkok-based company has sparked interest from other industry firms and financial investors, the people said, who asked not to be identified because the process is private. Non-binding offers are already coming in this week, according to the people.

The deliberations are ongoing and the company may decide not to sell the holdings, they said. An outside representative of True IDC declined to comment.

CP Group was investigating a divestment of True IDC that could yield about $200 million, Bloomberg News reported in September. The company said at the time that it had no intention of selling the company.

True IDC is a carrier-neutral data center and cloud service provider and, according to its website, is part of CP Group’s digital unit Ascend Corp. The unit operates four data centers in Thailand and one in Myanmar, the True IDC website shows.

Digital infrastructure such as towers and data centers are attracting investor interest following an increase in online activity during the coronavirus pandemic.

PLDT Inc, the largest telecommunications and digital services provider in the Philippines by market value, has chosen preferred bidders for its $1.5 billion local towers, people familiar with the matter have said. Time Dotcom Bhd, a Malaysian telecommunications provider, is considering strategic options for its data center operations that could be worth more than $500 million, Bloomberg News reports.

CP Group is controlled by billionaire Dhanin Chearavanont, who has a net worth of $4.6 billion, according to the Bloomberg Billionaires Index. He is the majority shareholder and senior chairman of CP Group, Thailand’s largest close-knit company, with interests in agriculture, food, retail and telecommunications.

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