Also, article in todays AFR for those that can access it:
"NextDC board rolled by 'zeroed out' shareholders
Seven months after data centre group NextDC spectacularly double-crossed some of its largest shareholders in a $672 million capital raising, those shareholders have delivered the board a salutary lesson.
Seven months after data centre group NextDC spectacularly double-crossed some of its largest shareholders in a $672 million capital raising, those shareholders have delivered the board a salutary lesson.
Remember, major long-term investors were left dumbfounded in April when NextDC diluted them in the placement by as much as 25 per cent (the ASX’s temporary, COVID-19 limit for dilutive raisings). Chief executive Craig Scroggie, with all of the institutional market cognisance of a carroty dilettante, personally curated the stock allocations to “zero out hedge funds and others that were looking to profit off the trade”. Pro-rata be damned.
And by dilettante, we really mean rank amateur. Scroggie diluted substantial shareholders Ellerston Capital and Macquarie Investment Management, neither of which are hedge funds, while handing a whopping haul to Greencape Capital, which sold its entire allocation the same week. He diluted Parametric and Dimensional Fund Advisors. Not even an investment bank’s receptionist would mistake them for short sellers. And that’s just a taste of the senseless inequity..."
And so it goes on.
NXT Price at posting:
$12.63 Sentiment: Buy Disclosure: Held
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