NEXTDC (ASX:NXT) has announced a takeover offer to acquire all the securities of Asia Pacific Data Centre Group (ASX:AJD) not owned by the company.
Last week, the data centre operator put forward a proposal for a conditional offer to acquire all of the ordinary, fully paid, stapled securities that it does not already own at $1.85 per security.
The unconditional all-cash off-market takeover offer issued today is $1.87 cash per security, with payment made within seven business days of acceptance by APDC securityholders.
NEXTDC claims this is a compelling offer as it represents a record price compared to any closing price of the Asia Pacific Data Centre Group (APDC) securities prices since listed with the ASX in January 2013.
The offer is highly attractive and represents compelling value for APDC securityholders with the additional benefit of certainty," said NEXTDC CEO Craig Scroggie.
"We are making this offer to APDC securityholders because we believe that we are the logical owner of the APDC data centres in the current circumstances.
"Consistent with our strategy since 2015, we intend to own a greater proportion of the properties we operate," Scroggie added.
Following NEXTDC's announcement, 360 Capital Group released a statement noting that NEXTDC's offer price was not expressed to be final and that it is capable of increasing the price.
360 Capital said it signed a confidentiality agreement and expects to commence due diligence today.
"The assets within the AJD portfolio are very strategic and are attractive not only to NEXTDC, but also other global data centre operators and data centre investors," the company said in a statement. "360 Capital will continue to access its options with regard to its stake in AJD."
The Asia Pacific Data Centre Group is a special purpose real estate investment trust (REIT) which was established to own properties – including land and buildings – that are operated or being developed as data centres.
The sole assets of the publicly-listed group, which was spun off by NEXTDC as an independent entity several years ago, are three data centre properties, Sydney (S1), Melbourne (M1) and Perth (P1), all of which are occupied by NEXTDC under long-term lease arrangements.
NEXTDC’s bid to buy back ownership of the company comes in response to efforts by publicly-listed fund manager, 360 Capital Group (ASX:TGP), to buy up a controlling stake in the property company and replace its management team with its own.
On 18 July, NEXTDC told shareholders it had acquired a 14.1 per cent stake in the property company in a bid to fend off 360 Capital Group’s move to take control of the company via the 19.8 per cent stake it claimed earlier this year.
Now, NEXTDC has told shareholders it has acquired an 18.6 per cent stake in the company at a cost of $38.2 million.