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Goodman Group, Digital Realty launch up to $499.7 million share bid on NextDC: term sheet
Goodman Group and Digital Realty offered to buy up to 9.9% of Australian data centre operator NextDC for A$9.50 per share, in a deal worth about A$715 million ($499.7 million), according to a term sheet. The offer price is 45.5% above NextDC's Wednesday closing price.
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What happened
Goodman Group and Digital Realty offered to buy up to 9.9% of Australian data centre operator NextDC for A$9.50 per share, in a deal worth about A$715 million ($499.7 million), according to a term sheet. The offer price is 45.5% above NextDC’s Wednesday closing price.
Confirmed
Global impact / market context
If shareholders accept, the buyers would gain a minority stake without seeking control, while NextDC could receive support for its share price. The offer comes as delayed customer revenue and paused expansion plans could constrain NextDC’s future growth and cash available.
Analyst inference
NextDC has fallen 45% this year after saying electricity network upgrades would defer about A$140 million of contracted revenue this financial year. The proposed share purchase therefore arrives amid operating disruption and a pause in new development and land acquisitions.
Confirmed
What to watch
- Whether NextDC shareholders accept the A$9.50 offer and how many shares are tendered will determine whether the buyers obtain the full 9.9% stake. Analyst inference
- The term sheet says the buyers do not currently intend to seek control, but reserve that right if circumstances change; any change would alter the deal’s implications. Confirmed
- NextDC’s progress resolving the Melbourne electricity upgrade delays will indicate whether the deferred contracted revenue returns on schedule or remains a drag on growth. Analyst inference
Evidence
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