Modular data centre manufacturer and operator DXN which has been a pioneer of data services in the Asia Pacific region has agreed to sell itself to an overseas competitor, subject to Foreign Investment Review Board approval.
Directors have unanimously supported the sale to Flow2Edge Australia for $26 million, allowing it to pay down debts and make a distribution to shareholders in the order of 11 to 13 cents per share.
This is a greater than 88 percent premium on the company’s average share price over the past three months.
The company also announced a capital raising to provide working capital through to the completion of the transaction.
DXN chairman John Baillie said the company’s directors had not taken the sale decision lightly.
Baillie said: “This transaction is not only a good offer, it also enables us to address the capital requirements for the business going forward.
“Further it leverages the experience and footprint of FLOW Digital infrastructure.
“We are excited about the opportunities this will create for our customers in the medium to long term.”
DXN has been focusing on key market segments in the region of subsea cables, resources, telecommunications, satellite and edge data centres and global internet companies.
Like many technology manufacturers its shares have been hit this year by global uncertainties, selling at between four and 14 cents in the past year.
This has been exacerbated by the company making losses in each of the past four years.
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