Takeovers Panel nixes NextDC request

The Takeovers Panel has declined to conduct proceedings on an application from suitor NextDC over the APDC Group.

NextDC chief executive Craig Scroggie. (Source: Supplied)

360 Capital’s attempt to gain control of Asia Pacific Data Centre Group looks a step closer after the Takeovers Panel declined to conduct proceedings on an application from rival suitor NextDC.

360 Capital (TGP), which owns 21 per cent of the target (AJD), has made an offer of $1.95 per APDC security that the target’s board has backed in the absence of a superior proposal.

But rival NextDC (NXT) owns 29 per cent of the target which could prove a challenge to 360 Capital’s aspirations, even after NextDC’s $1.87 bid has lapsed.

NextDC had applied to the Takeovers Panel over 360 Capital’s plans to make a capital distribution to APDC securityholders which it may use to repay a debt facility available to fund its bid.

This plan would constitute financial assistance and require securityholder approval, and adequate disclosure about this had not been given, NextDC said.

But the Takeovers Panel said the bidder’s statement disclosed the capital distribution would only go ahead after 360 Capital took advice on the legal obligations of APDC.

Any further disclosure would require speculation on the circumstances when the proposed capital distribution would be made, and speculation was unlikely to contribute to an informed market, the panel said.

The panel said there was no reasonable prospect it would make a declaration of unacceptable circumstances and declined to conduct proceedings.