NEXTDC Limited (ASX: NXT) (“NEXTDC” or the “Company”) has provided a short term bridging unsecured $29 million loan facility (“NEXTDC Facility”) to APDC Group (ASX: AJD). NEXTDC holds relevant interest of approximately 98.6% of AJD securities.
The earnings from the NEXTDC Facility will be used for the repayment of the principal outstanding under Bankwest’s existing senior debt facility. Bankwest’s existing senior debt facility is currently subject to a notice of existing default and tolerance.
The takeover bid between NEXTDC’s and AJD will conclude on 26 November 2018 at 4.00 pm (Sydney time). Securityholders of AJD who do not accept the offers made by NEXTDC, will have their securities acquired by the company for which they will receive the consideration during the conclusion of the compulsory acquisition process. This is also based on terms and conditions that there might be extension required by the Corporation Act., is expected to occur on or around 30 November 2018. Also, the company announced that it is ready to entertain any queries of the AJD securities holder on NEXTDC Offer Information Line number.
For the entire journey of the company, the company has shown a positive performance of 294.75%. The one year and five years of the performance was 19.22% and 169.07% respectively. However, for the past 6 months the company is giving a negative performance of -12.91%.
For the year ended 2018, The company reported a solid revenue growth. There was an increased revenue by 30% which is equivalent to $161.5 million. There was an increase in EBITDA by 28%. There was a fall in the operating cash flows by 26% to $33.4 million. The profit before tax for the company had gone down by 15%. The company made a net profit of $6.6 million. The total asset of the company was $1,235.9 million and the total liabilities of $341.9 million. This indicates that the company has potential to clear its long term obligations. The company holds cash and term deposit worth $418 million. The company has invested $285 million of capital for developing new and existing difference. The total current asset of the company is $464.222 million and total current liabilities is $36.484 million. This indicates that the company is able to meet its working capital as well as other short term obligations. The total shareholders equity is worth $893.977 million.
For FY19, the company is planning to increase its revenue in between $194 million to $200 million. The revenue growth of the company is the major reason for long term customer contracts. They also expects an increase in underlying EBITDA in between 20% to 28%. In response to the strong demand, the company expects the capital expenditure between $430 million to $470 million.
The current market price of the company is A$6.18 with a market capitalization of A$2.12 billion and PE ratio 272.89x. As per the chart, the moving average convergence and divergence line (MACD Line) was moving below the signal line. Today it has touched the line from below going towards the upward direction. This indicates that the price of the share may go bullish.
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