Saturday, November 25, 2017

Asia Pacific Data Centre rejects takeover bid from 360 Capital

Board of directors recommend shareholders to support NextDC’s unconditional all-cash offer of $1.87 per security.

The Asia Pacific Data Centre Group (ASX: AJD; APDC) has rejected 360 Capital’s (ASX: TGP) takeover bid leaving the way open to NextDC (ASX: NXT) potential acquisition of the company’s assets.

In a letter to shareholders, APDC said NextDC has indicated to APDC that it does not intend to support the Scheme Proposal that would result in APDC securityholders receiving $1.95 per APDC security comprising a capital distribution of $0.65 from APDC and a $1.30 cash consideration paid by 360 Capital.

APDC also said that without NextDC’s support, the Scheme Proposal cannot be implemented as the requisite securityholder resolutions to implement the Scheme Proposal would not be passed.

In the letter it reads: “The Scheme Proposal will not be progressed by the Board as it is not capable of being implemented.

“The Board remains committed to maximising value for all securityholders and notes that in the 360 Capital Letter, 360 Capital had also proposed an alternative proposal involving a capital distribution of $0.65 per APDC security and an offer being made by 360 Capital (or its related entity) to acquire APDC securities for $1.30 cash per APDC security (Alternative Proposal).

“The APDC Board is considering the merits of the Alternative Proposal on the basis that it is only capable of implementation as a takeover bid.”

NextDC was quick to react, welcoming APDC’s board decision to unanimously recommend support for NextDC’s unconditional all-cash offer of $1.87 per security, in the absence of a superior proposal.

NextDC CEO Craig Scroggie said: “We urge APDC securityholders to accept the compelling NEXTDC Offer which remains unanimously recommended by the APDC Board, and is the only unconditional offer available and capable of immediate acceptance”.

The NextDC Offer will close at 7.00pm AEST, 15 September 2017 (unless withdrawn or extended).