NEXTDC SHARES SOLD OFF AS ONGOING SPAT WITH 360 CAPITAL CONTINUES
Written on the 25 July 2017 by Ben Hall
SHAREHOLDERS in data centre operator NextDC (ASX: NXT) have dumped their stock in the company as its ongoing war of words with property funds manager 360 Capital continues.
At the centre of the bitter dispute is the potential takeover of the $215 million Asia Pacific Data Centre Trust (APDC), which owns three data centres in Sydney, Melbourne and Perth that house the storage for NextDC's operations.
NextDC owns a 17 percent stake in APDC (ASX: AJD) while Tony Pitt's 360 Capital holds almost 20 per cent and a takeover move for the data centre operator is a possibility ahead of a crucial meeting on Friday.
AJD was spun off from NextDC four years ago and when 360 Capital bought its stake in May, it proposed replacing APDC's board of directors.
NextDC CEO Craig Scroggie (pictured) responded to what he says is claims by 360 Capital in an ASX statement that his company had refused to engage with the property funds manager.
"We are not only disappointed, but deeply concerned that instead of engaging on the real issue that is before the AJD securityholders, 360 Capital has distracted the market by making inaccurate claims against NextDC," Scroggie says.
Scroggie has made it clear he does not want 360 Capital to either take control of management or complete a full takeover and the market now fears the potential for a conflict between NextDC and its possible new landlord.
NXT shares dropped nearly 10 per cent in the week to the close of trade on Monday to finish at $4.03. The share price rose to $4.055 at around 1pm AEST on Tuesday.
Business News Australia
Author: Ben Hall