APDC puts data centre assets on block
Takeover target Asia Pacific Data Centre Group has put its assets up for sale with hopes of reaping $300 million for its data centre properties.
The assets will be offered first to tenant NextDC, which had tried unsuccessfully to win control of the listed data centre group but still owns a significant blocking stake.
Rival suitor 360 Capital Group, which last month won two-thirds majority ownership of the target, is supportive of the sale at a price of $300 million or above, APDC says.
Commercial Insights: Subscribe to receive the latest news and updates
APDC says it has received more than 50 inquiries and requests for confidentiality agreements since appointing real estate agents last week for an international campaign.
The sale plan comes after a protracted battle for control between the two suitors, with 360 Capital gaining control after lobbing a $1.95 per security offer.
The bid trumped a previous $1.87 offer from NextDC, which had repeatedly indicated it would not sell into the 360 Capital bid and still owns a blocking stake of 29%.
APDC has offered the first right of refusal for the assets to its tenant NextDC, as required in its leases, with an asking price of $300 million.
NextDC has 20 business days to make a decision. If it refuses, APDC can sell the assets to a third party during the next 180 days on terms no more favourable than offered to NextDC.
The announcement follows NextDC’s push earlier this month to wind up the data centre trust and distribute the cash proceeds.
NextDC has asked for a list of APDC securityholders and says it will aim to convene an extraordinary general meeting early in the new year.
360 Capital boss Tony Pitt had previously expressed hopes of growing the business after taking control, eyeing opportunities to increase its exposure to data centres in the Asia Pacific region.
This article originally appeared on www.theaustralian.com.au/property.