21Vianet Group Spikes Amid $296 Million Investment

21Vianet Group Inc (NASDAQ: VNET) spiked almost 8 percent in the premarket following news of a $296 million investment from Kingsoft, Xiaomi and Temasek

According to the company’s press release, “affiliates of Kingsoft Corporation Limited, a leading internet based software developer, distributor and service provider, Xiaomi Corporation, a leading designer, manufacturer and marketer of mobile devices and other electronic equipment and a provider of internet services, and Temasek, a Singapore based investment company, have entered into definitive share purchase agreements with 21Vianet.”

“Upon the consummation of the investment contemplated under the share purchase agreement with Kingsoft, 21Vianet and Kingsoft will sign a business cooperation memorandum.

“Under the terms of the memorandum, 21Vianet will build, operate, maintain and provide technical support for new, state-of-art data centers in China to meet Kingsoft and its designated third party's next-generation cloud infrastructure requirements.

“Upon meeting certain conditions, 21Vianet will lease to Kingsoft and its designated third party (agreed to by 21Vianet) a combined minimum of 5,000 cabinets over the next three years.”

21Vianet Group recently traded at $20.27, up 7.7 percent.