Asia Pacific Data Centre Group has rebuffed an improved offer from 360 Capital to acquire it after NextDC refused to support the takeover.
APDC today told shareholders that without the support of NextDC – which owns a 21.1% stake in APDC – 360 Capital’s scheme proposal could not be implemented.
“Given the above, the scheme proposal will not be progressed by the board as it is not capable of being implemented,” APDC says.
360 Capital upgraded its bid to $1.95 per APDC security last week as it sought to gain control of the special purpose real estate investment trust.
It’s bid for the company follows NextDC’s August offer of $1.87 per security for APDC, which owns the three data center properties occupied by NextDC under long term lease in Sydney, Melbourne and Perth.
Asia Pacific Data Centres today reaffirmed its earlier recommendation that securityholders accept NextDC’s unconditional cash takeover offer.
Craig Scroggie, NextDC chief executive, also urged APDC security holders to accept NextDC’s offer, which closes on September 15, saying it was ‘the only unconditional offer available and capable of immediate acceptance’.
APDC says an alternative proposal presented by 360 Capital presents ‘signficant risk and uncertainties’ including issues with funding, terms, structure, conditions and approvals for APDC security holders.
It says it has engaged with 360 Capital to convey it’s concerns about the proposal, which would see 360 Capital acquiring APDC securities for $1.30 cash per security, and see if those concerns can be satisfactorily resolved.
In making its bid for APDC in August, NextDC noted that it had flagged its desire to own more of its data center properties back in 2015 when it announced plans to develop and own new data centers in Brisbane and Melbourne.
In making the offer last month, Scroggie said “We are making this offer to APDC security hodlers because we believe that we are the logical owner of the APDC data centers in the current circumstances.”