On 8 October 2018, NEXTDC Limited (ASX: NXT) announced that the group has agreed terms with the Asia Pacific Data Centre Group, being stapled securities of Asia Pacific Data Centre Holdings Limited and the Asia Pacific Data Centre Trust to acquire the remaining 70.8% of AJD securities through an unconditional all cash, on market takeover bid. Following this news, the share price of the company decreased by 1.282% as on 8 October 2018.
The company further advises that 360 Capital Group which holds an interest of 67.3 percent of the AJD securities, has stated that it is planning to accept the NEXTDC Offer in respect of all the securities in APDC that it holds in the absence of a superior proposal. After the acceptance of the Offer by 360 Capital, NEXTDC would have an interest in 96.5% of the AJD securities at which time NEXTDC is planning to proceed for compulsory acquisition of the outstanding AJD securities.
According to the offer, the company will pay cash consideration of $2.00 per security to AJD security holders. The Offer represents NEXTDC’s ‘best and final’ price and it will only be open until 26 November 2018 and will not be extended in the absence of a competing proposal. The AJD security holders who want to accept the Offer, simply need to sell their AJD securities on the market before the Offer closes on 26 November 2018. NEXTDC also confirmed that the Offer will not have any impact on the September quarterly distribution of $0.02 per security, which was declared on 20 September 2018 and it is payable on 25 October 2018, with a record date of 28 September 2018.
The overall funding requirement for the APDC acquisition is expected to be around $200 million, comprising payments made to acquire the 70.8 percent of APDC securities not currently owned, repayment of APDC’s debt and transaction and restructuring costs. NEXTDC is planning to fund the APDC acquisition from its existing cash reserves. This acquisition is in line with the company’s longer-term strategy to own more of data centre properties and it will provide the Company greater flexibility in its capital structure as the Company continues to build out its significant pipeline of data centre developments.
NXT’s share traded at $6.160 with a market capitalization of $2.15 billion as on 8 October 2018 (AEST 2:27 PM.)
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