Goodman Group and Digital Realty buy $730M NextDC stake
Key points
- The buyers stated that the transaction expands their presence in the data centre sector.
- The buyers launched a 9.9% stake acquisition in NextDC at $9.50 per share.
- NextDC shares dropped 60% over the past year amid power supply issues at its Melbourne site.
Goodman Group (ASX:GMG) and Digital Realty (NYSE:DLR) reportedly executed a $730 million transaction to acquire a 9.9% stake in NextDC (ASX:NXT) at $9.50 per share.
The acquisition price represented a 45.5% premium over the previous closing price of $6.53.
Short sellers rushed to borrow shares to participate in the first-come, first-served trade offering ahead of the 7PM deadline.
NextDC stated that power supply problems at its West Footscray data centre forced a reduction in full-year earnings guidance to $265 million.
Following the announcement, the Goodman Group share price came to $26.87.
NextDC operates 18 data centres across Australia and Asia while managing challenges related to expansion funding and infrastructure delays.
Goodman and Digital Realty hold equal ownership in Auckland Investments No.1 Trust, which acquired the strategic equity interest.
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