NEXTDC’s (ASX:NXT) move to reject a bid for its Asia Pacific Data Centre (ASX:AJD) spin-off by 360 Capital Group (ASX:TGP) has seen the latest offer for the publicly-listed data centre property firm binned.
“The Scheme Proposal will not be progressed by the board as it is not capable of being implemented,” Asia Pacific Data Centre Group told shareholders on 6 August.
The group cited NEXTDC’s decision that it does not intend to support the offer by 360 Capital Group.
“Without NEXTDC's support, the Scheme Proposal cannot be implemented as the requisite securityholder resolutions to implement the Scheme Proposal would not be passed,” Asia Pacific Data Centre Group said.
The move comes just days after NEXTDC found itself facing down a fresh bid from 360 Capital Group for control of Asia Pacific Data Centre Group.
The offer came less than a month after NEXTDC announced a takeover offer to acquire all the securities of Asia Pacific Data Centre Group not owned by the company.
On 28 August, NEXTDC’s efforts to take back total control of Asia Pacific Data Centre Group were backed by the data centre property group’s directors.
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 $1.87 per security.
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 the publicly-listed fund manager, 360 Capital Group, to buy up a controlling stake in the property company and replace its management team with its own.
“We urge APDC securityholders to accept the compelling NEXTDC Offer which remains unanimously recommended by the APDC Board, and is the only unconditional offer available and capable of immediate acceptance," NEXTDC CEO, Craig Scroggie told shareholders on 6 September.