NextDC shares jump after Goodman and Digital Realty seek stakes

Goodman Group and Digital Realty sought stakes of up to 9.9% in NextDC, an Australian data centre operator.

They arranged the share purchase after the market closed, and NextDC’s board called the move “opportunistic.”

NextDC shares rose more than 40% after the proposal, recovering some of the value lost when the company disclosed a delay to its Melbourne project.

The delay affects a planned upgrade at West Footscray and led NextDC to revise its earnings outlook.

The project’s delay has made NextDC more vulnerable because data centre businesses borrow and build quickly, then lease facilities to help cover their costs.

Local opposition has also halted plans for power poles to supply the site, and the Victorian government is expected to decide on further expansion after the state election at the end of November.

The two investors say they are not currently planning a takeover bid, but they have reserved the right to make one later.

NextDC has appointed advisers to assess any takeover approach, and its board says it will consider genuine proposals in shareholders’ interests.