A war of words has erupted between NEXTDC (ASX:NXT) and 360 Capital Group (ASX:TGP) over the property investment firm’s sources of cash for its proposed takeover of Asia Pacific Data Centre Group (ASX:AJD).
However, on 26 September, data centre operator, NEXTDC issued a statement claiming that 360 Capital Group did “not have sources of sufficient funds to acquire all the remaining APDC securities in which it does not have a relevant interest” without dipping into a $60 million debt facility it has with Bankwest.
Indeed, NEXTDC alleged that if 360 Capital Group does, indeed draw upon the debt facility in the event it is successful with its bid for the takeover of the data centre property group, it would need to repay the loan from the capital distribution it is proposing to pay APDC shareholders as part of the deal.
“NEXTDC considers that the proposed capital distribution raises APDC’s debt to imprudent levels, and is not in the best interests of all APDC securityholders, including NEXTDC,” the data centre operator told shareholders.
Now, 360 Capital has fired back in its own statement, lodged with the Australian Securities Exchange (ASX) on 27 September, saying that NEXTDC’s warning to shareholders was misleading, and claiming that its offer is fully funded.
“360 Capital has instructed its broker to purchase APDC securities on market up to the offer price of $1.95 per APDC security,” the company said in a statement. “For so long as that order remains open, APDC securityholders have the option to sell their securities on market.”
NEXTDC had previously dismissed a bid from 360 Capital to takeover the data centre property firm, which was spun off by NEXTDC as an independent entity several years ago.
The sole assets of the publicly-listed group 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 previously 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.
However, the new offer by 360 Capital saw APDC recommend shareholders to not accept the previous NEXTDC offer, stating that the new bid by 360 Capital was the superior proposal.
NEXTDC’s initial efforts 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.