21Vianet Chairman and CEO Josh Sheng Chen, Kingsoft Corp., and Tsinghua Unigroup sent the proposal to the company, offering to buy all ordinary shares of 21Vianet for $23 in cash per American depositary share. The offer amount to about $3.83 an ordinary shares.
The data center company's board plans to form a special committee of independent directors to consider the proposal to bring the company private.
21Vianet is a carrier-neutral data center that provides hosting and related services, managed network services, cloud services, content delivery network services, last-mile wired broadband services and business VPN services.
About 2.4 million shares of 21Vianet were traded by 11:35 a.m. Wednesday, above the company's average trading volume of about 783,000 shares a day.
TheStreet Ratings team rates 21VIANET GROUP INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate 21VIANET GROUP INC (VNET) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."