Goodman Group and Digital Realty plan to invest A$715 million to acquire up to a 9.9% stake in NextDC.

TechFlow: According to Reuters, Australian property group Goodman Group and data center operator Digital Realty announced on November 4 an offer to acquire up to 9.9% of data center operator NextDC for approximately A$715 million (around US$499.7 million). The proposed bid price is A$9.50 per share, reflecting a 45.5% premium over NextDC's closing price of A$6.53 on that day.

Under the terms of the transaction, both parties currently have no intention of launching a full takeover bid or seeking control of NextDC, but reserve the right to take relevant action should circumstances change. JPMorgan Chase acts as the lead financial advisor for this offer.

NextDC's shares have dropped approximately 45% year-to-date. Earlier, citing delays in power network upgrades for a major project in Melbourne, the company projected a deferral of roughly A$140 million in contracted customer revenue for the current fiscal year. The firm also announced a suspension of all new development projects and land acquisitions, while evaluating capital recovery options such as divesting certain development assets.