Menu
NEXTDC gets green light for Asia Pacific Data Centre takeover

NEXTDC gets green light for Asia Pacific Data Centre takeover

Move to buy back control backed by directors

NEXTDC CEO, Craig Scroggie

NEXTDC CEO, Craig Scroggie

NEXTDC’s (ASX:NXT) efforts to take back total control of Asia Pacific Data Centre Group (ASX:AJD) has been backed by the data centre property group’s directors.

The Asia Pacific Data Centre Group (APDC) 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.

In July, NEXTDC said it would make a multi-million dollar bid to wrest back ownership of the group 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 26 July, NEXTDC told shareholders it had put forward a proposal to APDC for a conditional offer to acquire all of the ordinary, fully paid, stapled securities that it does not already own.

The offer placed the value of the deal at $1.87 per security.

On 25 August, APDC said that its directors had unanimously recommended that its shareholders accept the NEXTDC offer.

"We welcome the APDC Board’s unanimous recommendation of the NEXTDC Offer,” NEXTDC CEO, Craig Scroggie, said. “We believe our offer provides compelling and certain value for APDC securityholders, as has been confirmed by APDC’s independent expert declaring the offer to be both fair and reasonable to APDC securityholders.

“We urge APDC securityholders to accept the NEXTDC Offer which remains the only unconditional offer available and capable of immediate acceptance,” he said.

The additional stakes NEXTDC has brought up in APDC since its decision to regain control of the group, and the proposed follow-on acquisition of Asia Pacific Data Centre Group, will be funded from NEXTDC’s existing cash reserves, the company said.

The director approval for the takeover comes as NEXTDC closes a previously announced $300 million, three-year financing arrangement. 


Follow Us

Join the newsletter!

Error: Please check your email address.

Tags NEXTDCAsia Pacific Data Centre Group

Show Comments