Company: GDHLF
Filing Date: 2025-05-27
Form Type: 424B5
Source: 0001104659-25-053057
Chunk: 94

Company: GDS Holdings Ltd
Filing Date: 2025-05-27
Form: 424B5
Chunk 94
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 ADS Borrower may elect to either pay us the value of the Borrowed ADSs in cash instead of returning the Borrowed ADSs or provide collateral to us with equivalent value.

The ADS Borrower or its affiliates will receive all of the proceeds from the sale of the Borrowed ADSs borrowed pursuant to the ADS Lending Agreement and we will not receive any proceeds from the sale of the Borrowed ADSs, but the ADS Borrower will pay us a nominal lending fee of US$0.0004 per each Borrowed ADS.

The Class A ordinary shares underlying the Borrowed ADSs that we will issue to the ADS Borrower will be issued and outstanding as fully paid shares for company law purposes. The ADS depositary will be the holder of the Class A ordinary shares underlying the Borrowed ADSs. The holders of the Borrowed ADSs will have all of the rights of a holder of our outstanding ADSs, including the right, through the ADS depositary, to vote on all matters on which our ADS holders have a right to vote (except the ADS Borrower and its affiliates have agreed not to vote the Borrowed ADSs held by them) and the right, through the ADS depositary, to receive any dividends or other distributions made to ADS holders in respect of any dividend or other distribution that we may pay or make on our outstanding Class A ordinary shares. However, under the ADS Lending Agreement and on the terms set forth therein, the ADS Borrower has agreed:

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to pay us an amount equal to any cash dividends or distributions (in liquidation or otherwise) that are paid on the Borrowed ADSs (net of any fees, costs or tax withholdings and deductions); and

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to pay or deliver to us any other dividend or distribution on the Borrowed ADSs (other than a dividend or distribution of ADSs) (net of any fees, costs or tax withholdings and deductions), or, in certain circumstances, an amount equal to the value thereof (net of any fees, costs or tax withholdings and deductions) or, subject to the terms of the ADS Lending Agreement, the increased number of the Borrowed ADSs reflecting the economic impact of such distribution..

The existence of the ADS Loan and the sale of the Borrowed ADSs under this prospectus supplement and the accompanying prospectus could have the effect of causing the market price of our ADSs and Class A ordinary shares to be lower over the term of the ADS Lending Agreement than it would have been had we not entered into the ADS