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APDC backs 360 Capital Group’s ‘superior’ proposal

14 September 2017 By Oksana Patron




The board of Asia Pacific Data Centre (APDC) has determined that the offer made by 360 Capital Group to acquire its securities, for a consideration of $1.95 per APDC security, is a superior proposal and announced it will recommend its security holders not to accept the NEXTDC offer.

In July NEXTDC put forward a proposal to APDC for a conditional offer to acquire all of the ordinary, fully paid, stapled securities of APDC at $1.87 per security.

In August, the APDC board subsequently recommended the securityholders to accept the NEXTDC offer in the absence of a superior offer.

Under the previous non-binding proposal that 360 Capital Group put forward in July, the company offered for $1.80 cash per APDC security.

However, in August 360 Capital Group announced in a statement to the Australian Securities Exchange (ASX) that it would review the APDC’s result and, based on the outcome of the review, the company decided to revise its proposal by increasing its offer price.

Following this, in September 360 Capital Group proposed to make an unconditional all-cash off-market takeover offer to acquire all the APDC securities that it did not already own for consideration of $1.95 per APDC security.

The company also stated that it intended to fund the offer from its own cash reserves and borrowings.

The APDC’s statement to ASX said: “The board has considered the 360 Capital Offer and has determined that the 360 Capital offer constitutes a superior proposal, because:

  • The 360 Capital offer will provide APDC securityholders with improved cash consideration of $1.95 per APDC security; and
  • 360 Capital has stated in its ASX announcement that the 360 Capital offer will be no similar terms to the NEXTDC offer.

“On that basis that the 360 Capital Group offer is a superior proposal, the board of APDC has changed its recommendation and now unanimously recommends that APDC security holders do not accept the NEXTDC offer,” the statement said.

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