NEXTDC RAMPS UP ITS TAKEOVER OFFER OF ASIA PACIFIC DATA CENTRE

NEXTDC RAMPS UP ITS TAKEOVER OFFER OF ASIA PACIFIC DATA CENTRE

NEXTDC Limited (ASX: NXT) has increased its takeover offer for listed data infrastructure group Asia Pacific Data Centre Group (ASX: AJD) from $1.85 per share to $1.87.

The move follows last week's announcement that NEXTDC would enter a bidding war with competitor 360 Capital Group (ASX: TGP) to takeover APDC.

The takeover bid still trumps the offer made by 360 Capital, which is looking to acquire all the securities in APDC for $1.80 per share.

NEXTDC says the new offer price represents "compelling value" as it is a record price compared to any closing price of the APDC shares since it listed on the ASX on 9 January 2013.

NEXTDC CEO Craig Scroggie says his company is the logical group to takeover APDC.

"We are making this Offer to APDC securityholders because we believe that we are the logical owner of the APDC data centres in the current circumstances," says Scroggie.

"Consistent with our strategy since 2015, we intend to own a greater proportion of the properties we operate."

NEXTDC currently has around 20 per cent relevant interest in APDC and is funding the takeover offer from existing cash reserves.

360 Capital holds almost 20 per cent of the data centre's shares too, and has proposed replacing APDC's board of directors in the past.

As the competitor, 360 Capital says it is continually assessing its options regarding the takeover and it expects to commence due diligence on APDC today.

"The assets within the AJD portfolio are very strategic and are attractive not only to Next DC, but also other global data centre operators and data centre investors," says 360 Capital.

Business News Australia

 


Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

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

Sydney home theatre retailer Life Style Store enters administration with 35 jobs lost

Sydney home theatre retailer Life Style Store enters administration with 35 jobs lost

A North Parramatta store that describes itself as the "largest...

TrueState raises $1.5m towards AI app template platform

TrueState raises $1.5m towards AI app template platform

Sydney-headquartered artificial intelligence (AI) app template star...

Sushi Sushi catches a new fish with Sushi Musa acquisition

Sushi Sushi catches a new fish with Sushi Musa acquisition

One of Australia's leading quick service retail (QSR) food chai...

Crypto platform Block Earner not out of the woods as ASIC appeals court ruling

Crypto platform Block Earner not out of the woods as ASIC appeals court ruling

Cryptocurrency trading app Block Earner has been brought back into ...