Nextdc shares jump after rivals seek stake in company
Shares of the Australian data centre operator rose as much as 46 per cent following an after-market share raid by competitors.
Shares of Nextdc Ltd. rose significantly in Sydney on Wednesday after rival data centre operators attempted to purchase equity following a recent selloff, according to Mint.
The company stated on Thursday that a venture involving Goodman Group and US-listed Digital Realty Trust Inc. sought to acquire a 9.9 per cent stake at A$9.50 per share. This price represented a 45 per cent premium to the closing price on Wednesday.
Nextdc said the board had not received a takeover proposal and described the move by Goodman and Digital Realty as opportunistic. The company added that it does not know the outcome of the share raid.
The stock has faced pressure after Nextdc reduced its earnings guidance by one third in October. This followed a delay to a Melbourne data centre caused by power infrastructure issues, where residents blocked work trucks and excavation pits in September.
Morgan Stanley analyst Andrew McLeod noted that strategic interest was not surprising given that shares have fallen about 47 per cent this year. The bank increased its price target for the company to A$9.50.