From Strength to Strength for NextDC Stock Price

The ASX200 listed technology company has moved from strength to strength throughout the past year. The stock price, at time of writing, is up around 98% from the beginning of February 2017.

Yet their growth hasn’t slowed down.

On 19 January, the stock price took a fall, reaching a monthly low of around $5.40.
It has since recovered, and jumped up 8.54% at time of writing, to an all-time high of $6.23.

What changed with NextDC?

In July of 2012 NextDC Ltd [ASX:NXT] announced plans to launch Australia’s first listed data-centre property fund — Asia Pacific Data Centre Trust (APDC).
APDC was listed on the ASX the following year.
Fast forward to 2017 and the property fund has been at the centre of a major takeover battle between its former owner, and its major shareholder Tony Pitt and his company 360 Capital.

NextDC currently remains on APDC’s share registry with an ownership of 29.1%, with 67% owned by 360 Capital.

But the rise today is believed to stem from speculation that the multinational asset management company, Blackstone could make an additional takeover bid for NextDC. According to News Corp press, it too is on a shortlist of around six parties competing for Asia Pacific Data Centre Group.

Blackstone recently missed out on the winning bid for APDC’s rival Metronode. This could make NextDC an ideal avenue into the market through its partial ownership of the property trust.

Looking forward

APDC owns data centres in Perth, Melbourne and Sydney that are home to storage operations owned by NextDC.

A take-over offer from Blackstone could push NextDC stock to new highs.

As with most take-overs, volatility remains for all parties involved.
However, the market is encouraged by the speculation, as NextDC stock has hit all-time highs since its listing back in late 2010.


Jack Cameron,                                                             

For Money Morning  


Kris Sayce,                                                 

For Money Morning  

PS: There are plenty of investments to choose from with exposure to the Asia Pacific, knowing which to hone in on is the hard part. That’s why we’ve put together a report on one of the largest players in the region, and its new growth potential. The report’s titled ‘New China Boom’. To check it out, click here.

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