This article is from the Australian Property Journal archive
360 Capital and NextDC have put forward their nominations for Asia Pacific Data Centre Board positions, following the takeover target accepting 360 Capital’s recently upgraded offer for the group.
The stoush inched further towards a conclusion with APDC’s approval of 360 Capital offer of $1.95 per security, but NextDC 29.2% blocking interest in APDC remains a threat with 75% approval from all shareholders required.
360 Capital has nominated its managing director Tony Pitt and chairman David van Aanholt, whilst NextDC has put forward chief executive officer Craig Scroggie and independent non-executive director Stuart Davis. The APDC annual general meeting will be held on November 23rd in Sydney.
The approved 360 Capital takeover offer of $1.95 per security closes at 7pm on November 6th. NextDC’s most recent offer of $1.87ps has lapsed.
NextDC was highly critical of 360 Capital’s takeover proposal, saying it has inherent funding risks, despite having been revised from a $1.95ps offer that initially required APDC to fund $0.65ps.
NextDC said 360 Capital had insufficient sources of funds to acquire all APDC securities without utilising its $60 million Bankwest debt facility.
360 Capital has more than $100 million available including the Bankwest and other debt facilities, cash and term deposits.NextDC said TGP is proposing to increase APDC’s debt to $100 million in order to fund a $0.65 capital distribution to all APDC securityholders, including themselves, equating the latest offer with the previous versions rejected by NextDC.
“NextDC’s 29.2% blocking interest in APDC securities would preclude TGP from achieving the requisite 75% voting threshold,” it said in a recent statement, flaunting its crucial stake.
In recent weeks NextDC publicly stated it was looking to secure two positions on the APDC board, following APDC’s acceptance 360 Capital’s latest offer.
NextDC is the sole tenant of APDC’s portfolio of three data centres.
The takeover stoush began in May when 360 Capital acquired a 19.8% stake in APDC, and had a request for a board position fall over. In response, NextDC upped its share in APDC in a bid to block any moves from 360 Capital.
Australian Property Journal
