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ChinaCache Announces US$55 Million Private Placement

BEIJING, March 3, 2014 (GLOBE NEWSWIRE) -- ChinaCache International Holdings Ltd. ("ChinaCache" or the "Company") (Nasdaq:CCIH), the leading total solutions provider of Internet content and application delivery services in China, today announced that it has signed a definitive securities purchase agreement with certain Institutional Investors (the "Institutional Investors") affiliated with one of the world's leading institutional investment management firms.

Pursuant to this agreement, the Institutional Investors will make an aggregate investment of US$55 million in ChinaCache by subscribing for 53,855,569 newly issued ordinary shares of the Company, which are represented by 3,365,973 American Depositary Shares of the Company ("ADSs"). The purchase price is US$16.34 per ADS, or US$1.02125 per ordinary share. The transaction is expected to close in March 2014, subject to satisfaction of customary closing conditions. The Company also agrees to give the Institutional Investors the preemptive rights to subscribe for the new shares that may be issued by the Company, in proportion to their shareholdings and certain registration rights.

Concurrently with the signing of the securities purchase agreement, the Company has signed definitive share repurchase agreements with certain existing shareholders, pursuant to which the Company agrees to repurchase a total number of 28,960,922 ordinary shares of the Company with the same price as the price Institutional Investors pay to subscribe the new shares. The Company will use the proceeds from the transaction for capital expenditures and to pay for the repurchased shares.

"We are pleased to have attracted top-tier institutional investors to strengthen our institutional ownership profile and augment our capital expenditure needs," said Ms. Jing An, Acting CFO. "One of our top priorities is to continue to attract long term institutional investors to our company as we execute on our plans to drive shareholder value. With this financing, certain early stage and existing investors can achieve liquidity, and enable additional quality investors to establish a presence in the ChinaCache name."

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