Global Switch: Response to Announcement by Jiangsu Shagang

• Global Switch’s controlling shareholder reorganises its shareholdings in Global Switch
• No change to Global Switch’s controlling shareholder, management team, strategy or financing structures
• Further enhancements to corporate governance and frequency of financial reporting as part of a stock exchange quoted group

LONDON, 24 November 2020, Global Switch (“Global Switch” or “the Company”), the leading owner, operator and developer of large-scale network dense, carrier and cloud neutral multi-tenanted data centres in Europe and Asia-Pacific, announces today that Jiangsu Shagang Group Co., Ltd (“Shagang”), has advised the Company of its intention to pursue a reorganisation of the shareholdings in Global Switch. Upon completion of the proposed reorganisation the Company’s 51% direct shareholder, Elegant Jubilee Limited, would become a wholly owned indirect subsidiary of Jiangsu Shagang Co., Ltd (“JS Co.”), a Shenzhen Stock Exchange quoted (stock code 002075.SZ) subsidiary of Shagang. Shagang, a member of the Fortune Global 500 list of the world’s biggest companies, will remain the Company’s controlling shareholder.

The reorganisation will provide enhanced liquidity for certain of Global Switch’s current investors, via JS Co.’s listing in Shenzhen - one of the world’s largest bourses, with an annual trading value of over USD10 trillion. It will also provide enhanced access to the global capital markets to support Global Switch’s future growth ambitions.

Under the terms of the proposed transaction, known as a Material Asset Restructuring, the Company has been informed that JS Co. will launch an offer to acquire the entire equity share capital of Suzhou Qingfeng Investment Management Co. Ltd, an on-shore PRC investment vehicle that is currently owned by a consortium of private and institutional investors, is controlled by Shagang and owns 100% of Elegant Jubilee Limited. The share acquisition is intended to be predominantly settled with the issuance of new shares by JS Co. which would then be admitted for trading on the Shenzhen Stock Exchange. The proposed transaction does not constitute a change of control of Global Switch and accordingly all of the Company’s existing debt financing structures are unaffected and will remain unchanged.

The Company has been advised by Shagang that the transaction is targeted to complete in H1 2021, subject to relevant shareholder, China Securities Regulatory Commission and other customary regulatory approvals. Following the transaction, the Company will explore further options in order to introduce liquidity for all its shareholders.

Shagang has confirmed to the Company that there will be no changes to the strategic direction, management or financial and operational policies of Global Switch, reflecting its continued confidence in the business model, strategy and management team and in line with the commitments enshrined in the Company’s Shareholders’ Agreement.

Global Switch will henceforth provide more frequent reporting of its performance and financial results as a result of becoming a consolidated subsidiary of a Shenzhen Stock Exchange listed entity. As announced earlier today, Corporate Governance has also been further enhanced with the appointment of Liew Fui Kiang as an independent non-executive director of the Company.

Commenting on the proposed shareholding reorganisation, John Corcoran, Chief Executive Officer of Global Switch said:

“As Global Switch continues to expand its market-leading offering across Europe and Asia-Pacific, the proposed restructuring by Shagang, our controlling shareholder, is a welcome development, which will deliver liquidity for investors and further enhanced corporate governance and disclosure requirements for the benefit of all our stakeholders. The Shenzhen Stock Exchange is one of the fastest growing international exchanges in the world, and as we continue to focus on serving global customers from east and west in an increasingly data-led global economy, this provides a strong platform from which to build, particularly as we grow our operations in Asia-Pacific, the world’s fastest growing data centre market”.