NEXTDC SHARES SOLD OFF AS ONGOING SPAT WITH 360 CAPITAL CONTINUES

NEXTDC SHARES SOLD OFF AS ONGOING SPAT WITH 360 CAPITAL CONTINUES

SHAREHOLDERS in data centre operator NextDC (ASX: NXT) have dumped their stock in the company as its ongoing war of words with property funds manager 360 Capital continues.

At the centre of the bitter dispute is the potential takeover of the $215 million Asia Pacific Data Centre Trust (APDC), which owns three data centres in Sydney, Melbourne and Perth that house the storage for NextDC's operations.

NextDC owns a 17 percent stake in APDC (ASX: AJD) while Tony Pitt's 360 Capital holds almost 20 per cent and a takeover move for the data centre operator is a possibility ahead of a crucial meeting on Friday.

AJD was spun off from NextDC four years ago and when 360 Capital bought its stake in May, it proposed replacing APDC's board of directors.

NextDC CEO Craig Scroggie (pictured) responded to what he says is claims by 360 Capital in an ASX statement that his company had refused to engage with the property funds manager.

"We are not only disappointed, but deeply concerned that instead of engaging on the real issue that is before the AJD securityholders, 360 Capital has distracted the market by making inaccurate claims against NextDC," Scroggie says.

Scroggie has made it clear he does not want 360 Capital to either take control of management or complete a full takeover and the market now fears the potential for a conflict between NextDC and its possible new landlord.

NXT shares dropped nearly 10 per cent in the week to the close of trade on Monday to finish at $4.03. The share price rose to $4.055 at around 1pm AEST on Tuesday.

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

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

Telix Pharmaceuticals (ASX: TLX), one of the nation’s largest...

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

In an effort to reduce the number of SMS phishing scam victims...

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Brisbane-based Stralis Aircraft has become one step closer to its a...

‘Gone the long yards’: Luxury boatbuilder Maritimo a stayer in local manufacturing

‘Gone the long yards’: Luxury boatbuilder Maritimo a stayer in local manufacturing

In an era when Australia’s mass-production car industry is a ...