Bidding war for data centre property group fires up, again
- 13 September, 2017 16:13
NEXTDC CEO, Craig Scroggie
The bidding war for Asia Pacific Data Centre Group (ASX: AJD) is firing up again after 360 Capital Group (ASX:TGP) has made another offer for shareholders to consider.
Data centre operator, NEXTDC (ASX:NXT) previously dismissed a bid from 360 to takeover its data centre property firm.
This time, the deal involves an unconditional all-cash off-market takeover offer of $1.95 per share. It has also stipulated that the payment will be made within seven business days of acceptance by AJD security holders and will be funded through existing cash reserves and borrowings.
In a statement to the Australian Securities Exchange (ASX), 360 said the offer presented a compelling opportunity for AJD’s board to secure a substantial premium to the NextDC offer, which was $1.87 per share.
In May, 360 bought 19.99 per cent stake in the data centre property group and launched its bid after NEXTDC announced its takeover offer to buy all the securities that it currently didn’t own. However, 360 stated the offer price was not final and that it was capable of increasing the price.
Back in July, NEXTDC CEO, Craig Scroggie, believed that it was the logical owner of 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 said at the time.
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.