GDS Holdings (GDS) has disclosed a new risk, in the Share Price & Shareholder Rights category.
GDS Holdings (GDSH) faces a significant business risk if its beneficial ownership in GDS Infrastructure (GDSI) drops below the critical 50% threshold or if it loses control over the board appointments and management policies of GDSI. Such a shift could trigger a change of control provisions in GDSI’s existing leases, customer, and loan agreements, potentially leading to early terminations, penalties, and loan repayments. This scenario could materially and adversely impact GDSH’s business development, financial health, and future outlook, as well as affect its ability to consolidate GDSI’s financials, in line with U.S. GAAP.
Overall, Wall Street has a Strong Buy consensus rating on GDS stock based on 5 Buys and 1 Hold.
To learn more about GDS Holdings’ risk factors, click here.
