APDC and NEXTDC Supreme Court stoush dissolves

APDC and NEXTDC Supreme Court stoush dissolves

The short-lived legal battle between data centre operators NEXTDC (ASX: NXT) and Asia Pacific Data Centres ('APDC') (ASX: AJD) has come to an end.

The Supreme Court of New South Wales legal proceedings, lodged against NEXTDC by APDC, have come to a quiet ending as the judge decided to not make any declarations.

This determination from the Supreme Court judge was made on the basis that there was no live dispute or current request for access from either party, thus the proceedings were dismissed.

In April 2018, APDC initiated legal proceedings against NEXTDC in relation to a dispute over APDC's claimed "ongoing access rights" at three of NEXTDC's data centres.

The three data centres in question are based in Sydney, Melbourne and Perth.

"Following numerous attempts seeking access to the APDC Portfolio for both the independent valuers and prospective purchasers to inspect the facilities, APDC Trust has now made an application to the NSW Supreme Court to seek specific performance under each of the leases to allow the inspections to take place," said APDC in an ASX release in April.

The release also clarified that APDC was seeking a declaration from the court that NEXTDC's conduct was in breach of its leases.

The issue between the two companies seems to have been resolved out of court, resulting in the dismissal of proceedings.

The two companies will continue to work together to allow APDC access into the data centres.

"APDC looks forward to a positive working relationship with NEXTDC," says APDC.

The tension between the two companies began back in 2017 when NEXTDC entered a bidding war with major APDC shareholder 360 Capital Group to takeover APDC.

360 Capital eventually outbid NEXTDC and currently holds the majority of shares in APDC.

NEXTDC holds a significant 29.2 per cent stake in the company.

In early April 2017, NEXTDC rejected a $265 million pre-emptive first right of refusal offer from APDC to purchase three data centres owned by the APDC Trust.

Prior to this, NEXTDC rejected the APDC Trust's pre-emptive first right of refusal offer of $280 million for the portfolio in February 2018, and a pre-emptive offer of $300 million in December 2018.

In December 2017, NEXTDC announced its intention to wind up APDC based on "elevated concerns" it holds about 360 Capital Group's ability to manage APDC.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Subscribe Now!
Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

PlaySide Studios strikes deal with Warner Bros to create Game of Thrones PC game

PlaySide Studios strikes deal with Warner Bros to create Game of Thrones PC game

Five months after announcing it signed a multi-game licence agreeme...

HMC Capital enters private credit market with $127.5m purchase of Payton Capital

HMC Capital enters private credit market with $127.5m purchase of Payton Capital

After more than a year of due diligence and amidst plans to lift it...

Cost of living elevates salaries and perks as key drivers of employee retention in 2024

Cost of living elevates salaries and perks as key drivers of employee retention in 2024

The cost of living is making salaries and perks just as important a...

Enterprise roll-out "one of the biggest launches in Canva's history" as ARR hits $2.2b

Enterprise roll-out "one of the biggest launches in Canva's history" as ARR hits $2.2b

Sydney-headquartered graphic design and visualisation tool giant Ca...