21Vianet Group Inc. surged the most in eight months in New York after the Chinese data-center operator said a buyout group led by its chief executive officer offered to take the company private. The American depositary receipts advanced 9.7 percent on Wednesday to $21.85, the highest close since Nov. 4. The offer of $23 per ADR from a group including CEO Josh Chen, Kingsoft Corp. and Tsinghua Unigroup International Co. represents a 16 percent premium over Tuesday’s closing level. Trading volume of 4 million shares was five times the full-day average of the past three months.
Chen Yizhou, chief executive officer of Renren, says the company is planning to sell some non-core businesses to improve their profitability and they are also considering investment and expansion opportunities in America and Hong Kong. Chen revealed during an interview with local Chinese media that under the current model it is hard for the company to make any profit. They will therefore implement a complete transformation and change their business model.