NEXTDC advised that it has acquired a 14.1% interest in Asia Pacific Data Centre Group (ADJ) for total consideration of $29m
AJD’s sole assets are three data centre properties occupied by NEXTDC under long-term lease arrangements: Sydney (S1), Melbourne (M1) and Perth (P1). Next did not retain ownership of these assets as a means of freeing up capital for growth. It intends to retain ownership of the centres it is currently developing
AJD is currently subject to a proposal whereby its largest securityholder, 360 Capital Group has requisitioned a meeting of Asia Pacific Data Centre Group securityholders to consider resolutions to remove the responsible entity of AJD and replace it with a nominee of 360 Capital.
Next believes that retaining the internalised management structure alongside an independent Board is in the best interests of AJD security holders and intends to vote its APDC Stake against all resolutions contained in the 360 Capital Proposal. The Company's immediate focus is on supporting the existing independent AJD Board's position of rejecting the 360 Capital Proposal at the extraordinary general meeting.
The purchase has been funded out of the Company's existing cash balance, which was increased through the $300m issue of Notes III senior unsecured debt offering.
The ASX announcement is available here.