Australia’s NEXTDC says new 9.9 per cent investors have made no proposal
Australian data centre operator NEXTDC said it had received no formal approach or proposal after Goodman and Digital Realty disclosed a joint 9.9 per cent stake. The investors bought shares through an equally owned vehicle and expressed interest in possible collaboration. NEXTDC said any future bona fide proposal would be assessed in shareholders’ interests.
Economics & Markets··Evening
NEXTDC says no formal approach has arrived
Australian data centre operator NEXTDC said it had received no formal communication or actual proposal after Goodman Group and Digital Realty disclosed a joint 9.9 per cent interest. Its response addressed the position of the company’s board following the arrival of the new substantial shareholders. A shareholding had been disclosed, while NEXTDC’s management had not received a formal approach from the investors.[1], [2]
NEXTDC’s board said it would assess any future bona fide proposal on its merits and with regard to shareholders’ interests. Shareholders were told they did not need to take action at this stage. The company said it would continue to inform the market in accordance with its continuous disclosure obligations.[1]
The stake was bought through an equal partnership
NEXTDC’s the substantial holding disclosure covers 75,215,528 shares acquired between 3 and 6 November. The average purchase price was 9.22 Australian dollars per share. The highest disclosed price, in transactions on 6 November, was 10.40 Australian dollars. The purchases on those earlier days form the stake now reported to the market.[1]
The investment was made through Ackland Investments No. 1, a vehicle owned equally by Goodman and Digital Realty. The two groups said they had not formed or made an agreement concerning potential further engagement beyond the purchase of the stake. Their disclosed position therefore sets out both the ownership arrangement for the investment and the limits of their agreement with each other.[1]
Investors leave future options open
Neither investor had a present intention to submit a control proposal or make a takeover offer for NEXTDC. Both nevertheless reserved the right to do so if circumstances changed. They expressed interest in potential collaboration with NEXTDC’s board and management, keeping possible engagement on the agenda without announcing an offer.[1]
The current development consists of the substantial shareholding disclosure and NEXTDC’s response to it. The investors’ stated interest in collaboration sits alongside their declared present intentions. Any later bona fide proposal would come before a board that has already committed to considering its merits and the interests of the company’s shareholders.[1]
