NextDC plans compulsory acquisition of APDC

NextDC is to press ahead with a compulsory acquisition of its landlord Asia Pacific Data Centre (APDC) Group after securing 97 per cent of the group's shares.

The data centre operator will pay APDC shareholders $2.00 per share and a total of $154 million to 360 Capital Group, which owns 67.3 per cent of the group’s securities.

360 Capital Group confirmed to shareholders it would receive a promised special distribution of $0.02 per security. 

Shareholders who choose not to accept NextDC’s offer have until 26 November to reconsider or sell on their shares on the open market.

On 8 October, NextDC told shareholders the acquisition will cost approximately $200 million, which will include buying 70.8 per cent stake in APDC, repaying its debt and restructuring costs.

The purchase will signal the end of a long-running saga between the two publicly-listed business over rights and access to three Australian-based data centres, which are owned by APDC and leased by NextDC.

NextDC, which currently holds 29.2 per cent of APDC, has been embroiled in a long tussle with its landlord and 360 Capital over regaining control of the centres, which are based in Sydney, Melbourne and Perth.

The spat first began in 2017, when 360 Capital Group bought a controlling stake in APDC, despite numerous efforts by NextDC to fight the takeover.

Once under 360 Capital Group, APDC embarked on a global campaign to sell off the centres for $300 million. NextDC was offered first right of refusal on the centres, an offer it rejected.

In February this year, the company claimed it had secured an unnamed buyer to acquire the centres for $280 million, which NextDC rejected again.

The buyer subsequently pulled out of a potential deal, after when APDC made another offer to sell the property portfolio to NextDC for an even lower sum $265 million.

When this was again rejected, APDC launched legal action against its tenants regarding a disagreement over access to the centres by valuers and prospective purchasers. The NSW Supreme Court later dismissed the case.