Goodman Group, Digital Realty launch up to $499.7 million share bid on NextDC: term sheet

Australian property ​firm Goodman Group and Digital ‌Realty on ​Wednesday offered to buy up to 9.9% of embattled data centre operator NextDC in a deal worth ‌about A$715 million ($499.7 million), according to a term sheet. Goodman Group and Digital Realty sought to buy the shares at A$9.50 each with their after-market offer, which ‌is a 45.5% premium to NextDC's Wednesday closing price of A$6.53.

NextDC declined ‌to comment. Goodman Group and Digital Realty did not immediately respond to requests for comment that were sent outside Australian and US business hours. NextDC shares have fallen 45% so far ⁠this ​year, after the company ⁠said last month that electricity network upgrades at one of its major Melbourne projects would ⁠mean about A$140 million worth of contracted customer revenue this financial year would be deferred.

NextDC ​said it would shelve all new development projects and land acquisitions ⁠for the foreseeable future. It also said it would evaluate capital recycling opportunities, including potential sales ⁠of ​selected development sites. The company's stock plummeted 42% when it made the announcement on October 21.

Goodman Group and Digital Realty have no intention of ⁠making a takeover bid or seeking control of NextDC at the moment, but reserve ⁠the right ⁠to do so if circumstances change, the term sheet said. JPMorgan is leading the offer, the term sheet said.

($1 = 1.4341 ‌Australian dollars)