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NEXTDC Limited (ASX: NXT) has emerged as the frontrunner to take control of Asia Pacific Data Centres (APDC) (ASX: AJD) after the $215 million takeover target endorsed its offer.
APDC's board of directors have passed down a unanimous recommendation in support of NEXTDC's unconditional all-cash offer of $1.87 per security, in the absence of a superior proposal.
Accounting firm BDO has concluded that the Brisbane-based NEXTDC's offer is both "fair and reasonable" to APDC securityholders.
APDC's board also recognised that the market responded positively to NEXTDC's announcement in August that they intended to take over the company.
Craig Scroggie, CEO of NEXTDC says the offer represents significant value for APDC shareholders.
"We welcome the APDC Board's unanimous recommendation of the NEXTDC Offer," says Scroggie.
"We believe our offer provides compelling and certain value for APDC securityholders, as has been confirmed by APDC's independent expert declaring the offer to be both fair and reasonable to APDC securityholders."
The NEXTDC offer closes on 15 September, 2017.
On 15 August, NEXTDC agreed to $300 million three year syndicated senior secured debt facilities with National Australia Bank to finance its takeover of APDC.
APDC's recommendation that shareholders accept NEXTDC's offer could signal the end of 360 Capital's chances to take over APDC. NEXTDC and 360 Capital have been in a heated bidding war to take over the data centres to expand their network footprint across Australia.
NEXTDC is effectively a tenant of APDC which owns three data centres in Sydney, Melbourne and Perth that house the storage for NEXTDC's operations.
At 11.30am (AEST), NEXTDC shares had risen one per cent to $4.30.
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Business News Australia
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