Originally posted by Smurph
Firstly, I think we are going to see some nice numbers in the half yearly. It’s been quiet on announcements but shorts have been hovering above 12 % for a few months now and the SP has appreciated somewhat from the 5.80s. Shorts look to me to be starting to fall back. A bumper February report will have them covering big time imo. Secondly, I know I’ve talked about a possible takeover for a while now but Im convinced it is going to happen this year. Not what everyone wants (myself included) however, like anything, everything has a price. My guess is we are too expensive for someone like blackstone to have a crack at so I’ll knock them out of the picture straight away. Equinix already are heavily entrenched in the Aus market after their Metronode takeover. To me, the company making a move in our corner of the world could be Alibaba. Obviously FERC will have to sign off on it but that’s my thinking atm. Thoughts???
i”It doesn’t make sense on an alibaba take over for many reasons. NXT is independent and carrier neutral. Don’t think Microsoft, AWS and Google would like a competitor owning and hosting dayacentres they are in.
To me the most logical fit would be ST Telemedia Global Data Centres. The acquisition would be similar to their acquisition of Virtus (UK).
https://virtusdatacentres.com/press...ntres-acquires-control-of-virtus-data-centres
ST Telemedia is part of the Singapore Sovereign Wealth fund. These guys are strategic and have the capital to fund NXT expansion. Only a strategic, long term buyer will buy NXT at a premium as they know potential. Just like all of us do.
Others suiters would be Digital Reality. They have a large presence in Australia. They need to acquire NXT to better compete with Equinix in the local market.
The second reason Alibaba isn’t the right fit is Huawei. There is something that 5 eyes countries (US, UK, Aus,NZ and Canada) know about Huawei that they have banned them. Though Alibaba is a great example of what a Chinese company can achieve globally and I think Jack Ma is a great guy but Jack Ma’s Association with communist party could hurt its prospects. So commercial it does not make sense. Additionally FIRB might block it.
