Bumskins .... the money has already been spent for a lot of growth ... the data halls are ready to go - a lot of electrical and cooling capacity is already there. The costs are already being carried, so effectively an increase in utilisation is pure profit (apart from extra energy costs).
From a take-over perspective .... it would be a big fish to swallow NXT now ... but there is a precedent for the value, so the number is not out of thin air. As I said, I hope any prospect of that is a few years away. These things are Rolls Royce compared to most data centres, so if someone is chasing quality, these are alone in Australia.
I recall the costs for the B2 and M2 expansions being comprehensive ... they include the construction and fit-out costs. B1 and M1 are the centres that need expansion, being close to fully utilised; the rest have plenty of capacity for sale. Thus, the cash they have should be good for this work ... and growing revenue will provide cash for future works. Remember also that B2 and M2 will be more cost effective, being rent free.
Still, you're out with a profit ... and you can always choose to come back in if the sp looks favourable to you again. I hope you find something else as lucrative as this has been over the last 6 months (and I hope will be in the future!)
NXT Price at posting:
$3.40 Sentiment: Buy Disclosure: Held
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