SDHG (00412) intends to sell approximately 38.78% of its shares in Century Internet. Trading will resume on May 22nd.

SDHG (00412) announced that on May 13, 2026, the seller (each being a wholly-owned subsidiary of the company) and the buyer PJ Millennium Limited Partnership (together and individually) entered into a share purchase agreement with other parties, whereby the seller agreed to sell and the buyer agreed to purchase the sale shares of the target company Century Internet (i.e. 650 million shares of Class A common stock of the target company, representing approximately 38.78% of the total Class A common stock of the target company as of the date of this announcement) for a consideration of USD 9.42 billion, subject to the terms and conditions of the share purchase agreement. Upon completion of the sale, the group will no longer hold any shares of the target company. The target company trades its Class A common stock under the ticker symbol "VNET" on Nasdaq. It is an investment holding company. The target group is mainly engaged in providing custody and related services, including IDC (Internet Data Center) services, cloud services, and VPN services, to enhance the reliability, security, and speed of its customers' internet infrastructure. Since the company first acquired the sale shares, the company has helped Century Internet overcome the liquidity pressure at the end of 2023 and the unclear performance growth trend by participating in major decisions, empowering resources, and synergizing its "power + algorithm" business. This has led to an improvement in international credit ratings, a turnaround of performance from losses to profits, and a continuous increase in the on-shelf rate and pre-signing rate of key projects, gradually gaining recognition from capital market investors for Century Internet. In addition, the continuous growth and expansion of the artificial intelligence industry has driven a significant increase in the market valuation of companies in the data center and digital infrastructure industry, which is reflected in the trading price of the target company's American depositary shares. The consideration for the sale shares is USD 1.4486 per share, representing a significant premium over the original acquisition cost of the group. The directors believe that the sale provides the group with the opportunity to realize its investment in the target company in a timely manner. By advancing the sale, the group will be able to more effectively reallocate resources and focus on expanding and cultivating its core business. In addition, the sale is expected to generate additional cash flow for the group and further enhance its overall financial position. The proceeds from the sale of the shares are expected to be used for the repayment and refinancing of interest-bearing debt of the group, aiming to reduce its asset-liability ratio and improve its financial leverage position. The group is committed to cultivating an ecosystem for the coordinated development of transportation infrastructure, new energy, and algorithmic power industries. After the completion of the sale and resource reallocation, the group will continue to judiciously assess its capabilities and strategic layout, exploring long-term investment opportunities in the clean energy and AIDC industry chains upstream and downstream. The proceeds from the sale will provide funds for the group's future strategic investments. The company has applied to the Stock Exchange for the resumption of trading in its shares starting from 9 am on May 22, 2026.