NEXTDC launches $200m takeover bid for remaining APDC shares
Written on the 8 October 2018 by Matt Ogg
Data centre operator NEXTDC (ASX: NXT) is on track to putting a property stoush to bed after striking a deal with Asia Pacific Data Centre Group ('APDC') (ASX: AJD) to buy the remaining 70.8 per cent of shares in the company for around $200 million.
The offer represents a 7 per cent premium at $2 per share, but in total is $100 million short of what APDC and its current majority owner 360 Capital Group were hoping for when they pitched the sale in late 2018.
APDC is a spin-off of of NEXTDC with a portfolio of three data centre properties in Sydney, Melbourne and Perth that are operated by NEXTDC.
The two companies were previously embroiled in a dispute over access rights, and the relationship has been strained ever since a bidding war began last year between NEXTDC and 360 Capital.
360 Capital - which owns 67.3 per cent of the AJD securities - has announced it intends to accept the offer in the absence of a superior proposal.
As the takeover is unconditional all cash and on market, shareholders need only sell their shares before the offer closes on 26 November.
After buying up 360 Capital's shares, NEXTDC would hold a 96.5 per cent share of the company, and this would be followed by the "compulsory acquisition" of the remaining stock.
For the data centre operator it makes sense to own the facilities it currently leases given its expanded capital base with liquidity now in excess of $900 million.
"Completing this acquisition is in line with our long-term strategy to own more of our data centre properties," says NEXTDC CEO Craig Scroggie.
"This will provide the Company greater flexibility in its capital structure as the Company continues to build its significant pipeline of data centre developments."Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.
Business News Australia
Author: Matt Ogg