BEIJING, May 13, 2026, 22:12 (China Standard Time)
- PJ Millennium entities have struck a deal to purchase as many as 650.4 million VNET Class A shares from sellers under the SDHG umbrella.
- After the deal closes—targeted for Q4 2026—the buyers will end up holding as much as 38.1% of VNET.
- VNET’s ADRs on Nasdaq jumped over 30% in U.S. morning hours.
VNET Group Inc. stock surged Wednesday after the Chinese data center firm announced PJ Millennium I Ltd. and PJ Millennium II Ltd. had struck a deal to purchase as many as 650.4 million Class A shares from entities under Shandong Hi-Speed Holdings Group. Each share goes for $1.4486, while one American depositary share—each representing foreign stock—lands at $8.6914.
The buyer’s identity is central here. PJ Millennium entities fall under PJ Millennium Limited Partnership, with Lochpine BG I GP Ltd. as general partner. According to VNET, Lochpine BG I GP Ltd. is not controlled by, nor consolidated with, CATL, but is considered an affiliate. Reuters calls CATL the world’s largest maker of electric-vehicle batteries—an important detail, since AI data centers are pushing the limits on power, cooling, and component supply.
This lands just ahead of a looming earnings check. VNET on Tuesday announced plans to release its unaudited first-quarter numbers on May 26, ahead of the U.S. market open. Management’s call is set for 8 a.m. Eastern Time—8 p.m. in Beijing.
VNET’s ADRs on Nasdaq surged 32.4% to $11.94, briefly reaching $12.00 as shares changed hands at a hefty clip—volume near 25.4 million. That puts the stock sharply higher than the $8.6914 ADS-equivalent block price, a clear sign investors weren’t fixated on the terms of the share transfer.
Once the deal wraps up, buyers could end up with as much as 38.1% of VNET’s outstanding shares. That figure is calculated off 1.71 billion ordinary shares as of March 31. The transaction still needs SDHG shareholder approval and other conditions, with closing eyed for the fourth quarter.
The setup matters here. According to VNET, the buyers are acquiring shares held by Success Flow International Investment and Choice Faith Group Holdings—not picking up new shares straight from the company. Structurally, that changes who holds the stock, but it doesn’t look like fresh capital is landing in VNET’s accounts.
The buyers, according to related deals, pick up some investor rights but can’t freely transfer a portion of the shares they’re acquiring. They’ll also have to follow voting instructions from founder Josh Sheng Chen and his associated founder group on certain shares, for a set period.
VNET’s founder Chen—who is also serving as executive chairperson and interim CEO—said the firm plans to team up with its new strategic investors around “technology and supply chains” and pursue “end-to-end innovation” in the AI data center space. The company hasn’t set out any financial goals for the partnership. PR Newswire
VNET has been in rapid expansion mode. Back in March, the company reported that total net revenue for 2025 climbed 20.5% to RMB9.95 billion ($1.42 billion). Wholesale data-center revenue surged 77.4% to RMB3.46 billion. The outlook for 2026: revenue between RMB11.5 billion and RMB11.8 billion, with capital spending forecast in a RMB10 billion to RMB12 billion range.
VNET pitches itself as a data-center provider that’s both carrier- and cloud-neutral—customers aren’t locked into a single telecom or cloud outfit. The company reports a footprint spanning 30-plus cities across China, claiming over 7,000 enterprise clients for hosting and related services.
Competition in this sector is fierce—and expensive. GDS Holdings is still trading as a China data-center rival. Bain Capital, according to an April Reuters report, was aiming for a $5 billion price tag on Bridge Data Centres after already offloading Chindata to a Shenzhen Dongyangguang-led group for $4 billion.
The deal isn’t locked in yet. SDHG shareholders still have to sign off, and VNET has flagged that a seller could unload as many as 195.1 million Class A shares ahead of closing—unless the buyers decide that chunk needs to stick around through Sept. 15. Investors will be watching heavy capex, debt levels, and how fast AI-related orders actually come in next.
