Goodman Group and Digital Realty Plan to Spend AUD 715 Million to Acquire Up to a 9.9% Stake in NextDC

According to TechFlow, on November 4, Reuters reported that Australian real estate group Goodman Group and data center operator Digital Realty proposed on November 4 to acquire up to a 9.9% stake in data center operator NextDC, with a transaction value of approximately AUD 715 million (about USD 499.7 million). The proposed acquisition price is AUD 9.50 per share, representing a 45.5% premium to NextDC's closing price of AUD 6.53 on the day.

Under the transaction terms, the parties currently have no intention to launch a full takeover or seek control of NextDC, but reserve the right to take relevant action if circumstances change. J.P. Morgan is serving as the lead adviser for the offer.

NextDC's share price has fallen about 45% year to date. Previously, due to delays in power network upgrades for a major project in Melbourne, the company expected approximately AUD 140 million of contracted customer revenue for the current fiscal year to be deferred, and announced that it would pause all new development projects and land acquisitions while evaluating capital recovery options, including the sale of certain development assets.

Source: TechFlow