APDC launches lawsuit against NEXTDC

19 April 2018, Written by David Simmons

APDC launches lawsuit against NEXTDC

The ongoing saga between NEXTDC (ASX: NXT) and the Asia Pacific Data Centre Group Limited (APDC) (ASX: AJD) has come to a head.

It was revealed on Thursday morning that APDC has initiated legal proceedings against NEXTDC in relation to a dispute over APDC's claimed "ongoing access rights" at three of NEXTDC's data centres.

The three data centres in question are based in Sydney, Melbourne and Perth.

NEXTDC says it intends to defend APDC's latest claims.

APDC went on to clarify the nature of the lawsuit against NEXTDC in a statement to the ASX.

"Following numerous attempts seeking access to the APDC Portfolio for both the independent valuers and prospective purchasers to inspect the facilities, APDC Trust has now made an application to the NSW Supreme Court to seek specific performance under each of the leases to allow the inspections to take place," says APDC.

The release also clarifies that APDC is seeking a declaration from the court that NEXTDC's conduct is in breach of its leases.

This is not the first bout of drama between the two data centre companies. In 2017, NEXTDC entered a bidding war with major APDC shareholder 360 Capital Group to takeover APDC.

360 Capital eventually outbid NEXTDC and currently holds the majority of shares in APDC.

NEXTDC holds a significant 29.2 per cent stake in the company.

In early April 2017, NEXTDC rejected a $265 million pre-emptive first right of refusal offer from APDC to purchase three data centres owned by the APDC Trust.

Prior to this, NEXTDC rejected the APDC Trust's pre-emptive first right of refusal offer of $280 million for the portfolio in February 2018, and a pre-emptive offer of $300 million in December 2018.

In December 2017, NEXTDC announced its intention to wind up APDC based on "elevated concerns" it holds about 360 Capital Group's ability to manage APDC.

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Business News Australia

Author: David Simmons





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