NextDC bid for APDC to lapse

The battle to gain control of the Asia Pacific Data Centre has been put on hold, with NextDC confirming at the weekend its bid would lapse, leaving 360 Capital in the box seat.

The data centre sector is increasingly on the radar of investors and investment bankers who believe it is an attractive REIT-like asset, given the difference between the real estate owner and the centre operators.

360 Capital, headed by investor Tony Pitt, delivered a $1.95 all-cash offer late last week that trumped the $1.87 on the table from APDC’s main tenant NextDC, which was looking to buy its landlord.

It was the fourth effective offer from 360 Capital, but significantly, it was the first fully funded bid and was considered over the weekend by the APDC board.

NextDC sits on the APDC register with about 30 per cent, which gives it an effective blocking stake. It says it will now consider the rival offer.

The bidder’s statement from 360 is due to be published in the next fortnight. A key component that will be watched closely by shareholders is the composition of the funding.

There have been questions over how past 360 Capital offers would be paid for, and given the company has said this new offer is fully funded, the structure of the bid will be scrutinised.