(Bloomberg) -- Chindata Group Holdings Ltd., a Chinese data center company backed by private equity firm Bain Capital, has received preliminary takeover interest from other firms in the industry, according to people familiar with the matter.

Shanghai-based GDS Holdings Ltd. is considering a bid to combine with Chindata, the people said, asking not to be identified because the matter is private. Rivals like EdgeConneX, backed by private equity firm EQT AB, could also weigh potential bids for the company, they said.

Prospective buyers could see Chindata as a bargain, as its stock has suffered under China’s crackdown on tech companies. Shares of the Beijing-based firm have plunged 68% in the past year, giving it a market value of about $1.6 billion.

Chindata’s board hasn’t yet considered any proposal, one of the people said. The buyout firm could decide to delay any transaction until Chindata’s stock price bounces back, they said. 

Discussions are preliminary, there is no formal sale process and the talks may not proceed to a more advanced stage, the people said.

Representatives for Bain and EQT declined to comment, while representatives for Chindata and GDS didn’t immediately respond to requests for comment.

Digital infrastructure assets such as data centers became hot assets during the coronavirus pandemic thanks to demand from video streaming to online gaming. Investor enthusiasm for Chinese technology companies was blunted by regulators, whose campaign to rein in the industry flattened once-high-flying share prices. Chinese companies traded in New York have also been hit by tensions between China and the U.S. over auditing rules.

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