NEXTDC recommends ‘yes’ vote for APDC wind up | Finance News Network

NEXTDC recommends ‘yes’ vote for APDC wind up

Company News

by Kathy Skantzos

Technology company NEXTDC (ASX:NXT) is recommending that security holders in the Asia Pacific Data Centre Trust (APDC) vote in favour to wind up the trust at a meeting scheduled for 31 January 2018.

NEXTDC Chairman Doug Flynn said the sale of the APDC Trust’s properties and return of the net proceeds to members alongside the winding up of the trust is in the best interest of security holders.

The company said it is concerned over the governance track record of 360 Capital Group, which now controls APDC, after stating its debt would be increased by more than 3.5 times to the level of $100 million to fund a capital distribution.

NEXTDC said the capital distribution proposal would allow 360 Capital to repay debts and replenish cash reserves used to find its takeover bid for APDC, but it would increase APDC’s risk profile and reduce the value of further distributions and the ability to fund growth initiatives.

NEXTDC’s interest carries more than 5 per cent of the votes that may be cast at the APDC trust member meeting.

Shares in NEXTDC (ASX:NXT) ) closed 0.5 per cent lower on Tuesday to $5.97.
 

Kathy Skantzos

Finance News Network
Kathy presents the Market Outlook and ASX company news. She joined FNN in September 2017. She has been in print and online journalism for over 9 years. She also worked in corporate communications.