NEXTDC ENTERS BIDDING WAR WITH 360 CAPITAL GROUP FOR APDC
Written on the 26 July 2017 by David Simmons
DATA centre operator NEXTDC (ASX: NXT) has started a bidding war with 360 Capital Group to take over Asia Pacific Data Centre (ASX: AJD) after it launched a fully funded $1.85 a share cash offer for the company.
The takeover bid trumps the offer made by 360 Capital to acquire all the securities in APDC for $1.80 per share.
NEXTDC CEO Craig Scroggie (pictured) says the takeover is in line with the company's strategic goals set in 2015.
"In 2015, we advised the market of our change in strategy to own more of our data centre properties over the longer term when we announced that NEXTDC would proceed to develop and own the new data centres for Brisbane and Melbourne," says Scroggie.
NEXTDC intends to acquire APDC because it is the tenant in its three data centres in Sydney, Melbourne, and Perth.
"Sydney, Melbourne, and Perth are properties well known to us and represent a low risk acquisition for NEXTDC," says Scroggie.
The Brisbane based company currently holds an 18.6 per cent stake in APDC, worth $38.2 million.
The takeover of APDC will be funded by NEXTDC's existing cash reserves, currently worth more than $360 million.
The directors of APDC have made a recommendation to shareholders to vote against 360 Capital's takeover proposal, but they are yet to comment on NEXTDC's takeover offer.
Author: David Simmons