Correct Fleasbarn, every move is anticipated (not by NXT).
NXT have been screwed over and outplayed since Day 1. They should have gone hard early and made 50% but they thought they were cute getting 30%+. Now what has happened ?
1. 360 Capital has majority.
2. 360 Capital, via AJD made the $300m offer to NXT which has been formally rejected
3. 360 Capital can vote at the upcoming meeting and will win (NXT lose gain) - at what cost to NXT ?
What's next ?
4. AJD get an offer for $300m or more for the properties.
5. NXT no longer have any purchase rights at that level, signed that away !
6. Buildings sold and NXT have a new landlord.... now that worked out great didn't it !!
The only positive is they will make a nice profit on the AJD holding following the divestment. But wait - maybe TGP will give them a further uppercut by keeping the $300m less debt repayments and reinvesting into other opportunities via the Asia Pacific Data Trust ?
7. NXT object - good luck with that vote !!
My message to the Board - "stick to running a Data Centre Business" and leave property ownership to property trusts !
by the way, before people get ants in their pants, I have owned NXT for years and intend to own NXT for many more years. I like the business. Happy to own the latest centres till built and developed but if they can sell at a sub 5% cap rate with a long lease on generous terms to NXT- take the cash from them also and expand the business as the rate of return on capital invested is much more attractive.
NXT Price at posting:
$5.59 Sentiment: Hold Disclosure: Held
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