Investment

    HMC Capital unveils $1.94B acquisition of Global Switch Australia

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    HMC Capital (ASX:HMC) has unveiled plans to expand its global digital infrastructure presence through key strategic acquisitions and equity raising.

    The company has agreed to acquire Global Switch Australia for $1.94 billion, setting the cornerstone for its new Global DigiCo Platform.

    The acquisition will enable HMC Capital to establish both a listed and unlisted fund aimed at capturing growth in the digital infrastructure sector.

    To support the Global Switch Australia acquisition, HMC Capital is conducting a $300 million fully underwritten institutional placement.

    This financing aligns with HMC's strategy to uphold a robust balance sheet while targeting a return on equity of over 20%.

    CEO David Di Pilla expressed enthusiasm for the acquisition, saying, "We are excited to today announce a major acquisition to seed our global digital infrastructure platform."

    In addition to the Australian acquisition, HMC is exploring further opportunities in the United States.

    These assets, currently under exclusive due diligence, include Tier 1 hyperscale and enterprise data centres.

    The initiative aims to meet demand from investors seeking exposure to high-quality digital assets.

    Trading updates indicate strong performance for HMC Capital, with a projected annualised FY25 Operating EPS of 46 cents, up 24% on the previous year.

    The firm maintains its FY25 dividend per share guidance at 12 cents, highlighting its commitment to delivering value for shareholders.

    The placement is fully underwritten by leading financial institutions including Goldman Sachs, UBS, Macquarie, and J.P. Morgan.

    HMC's shares will recommence trading on the ASX on Oct. 25, following the announcement of the placement's completion.

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