360 Capital Group divested its 67.3% stake in Asia Pacific Data Centre, or APDC, for A$154.8 million as it accepted NextDC Ltd.'s A$2.00-per-security takeover offer for the data center landlord.
The transaction gave the selling shareholder approximately A$145.0 million of additional cash. From its investment in APDC, 360 Capital also netted an estimated A$19.2 million, or a 14.4% internal rate of return, according to a press release.
360 Capital intends to use a portion of the proceeds from the stake sale to repay a A$20.0 million corporate debt facility. It also plans to use some of the income for the expansion of its nonbank lending business and other growth initiatives, which it said will generate higher returns than the investment in APDC.
Pursuant to NextDC's proposal, 360 Capital will also receive a special distribution of 2 Australian cents per security on Nov. 14 and a separate quarterly distribution of the same amount on Oct. 25.
NextDC's stake in APDC increased to 97.0% following the transaction. The offeror is expected to commence compulsory acquisition of the remaining outstanding securities that it does not already own in the target on Oct. 23.