(Bloomberg) -- Global Switch Holdings Ltd. is exploring the sale of a majority stake in its UK business, which could be valued at about £1.5 billion ($1.95 billion) in a deal, according to people with knowledge of the matter.
The data center operator is working with UBS Group AG for the potential stake sale that could bring in new capital for business expansion, the people said. They are targeting mostly financial investors for the deal, said the people, who asked not to be identified as the information is private.
The attempt comes after Global Switch agreed to divest its Australian business to HMC Capital for about A$1.9 billion ($1.3 billion) in October. The company is going to spend the proceeds on growth opportunities in new and existing markets, one of the people said.
Deliberations are at an early stage and the company could decide to keep the assets for longer, according to the people. Representatives for Global Switch and UBS declined to comment.
Founded in 1998, Global Switch owns and operates data centers across Europe and Asia, including Amsterdam, Frankfurt, Hong Kong, Paris and Singapore. In London, the company run two data centers that are located just 0.5 miles from Canary Wharf, one of the main financial districts of the city. It’s developing a third data center in London, which will span as much as 27,000 square meters, according to its website.
Global Switch’s owners, which include Chinese steelmaker Jiangsu Shagang Group Co. and Avic Trust Co., bought control of the group from British billionaire brothers David and Simon Reuben in a series of transactions starting in 2016.
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