NextDC shares jumped as much as 45.8% on Thursday, their biggest intraday gain on record, after Goodman Group and Digital Realty moved to buy up to 9.9% of the Australian data-centre operator at A$9.50 a share, 45.5% above Wednesday's close.
Two weeks ago, investors were dumping the stock. Today, two of the biggest names in property and data centres are paying a big premium for a slice of it.
A A$715 million bet at a 45.5% premium
A trust owned equally by Goodman and Digital Realty ran a book build for institutional investors, seeking up to 9.9% of the company. The stake is worth about A$715 million (about US$501 million). NextDC traded around A$9.34, up roughly 43%, after touching A$9.52, while the ASX 200 gained 1.8%.
The buyers matter as much as the price. Goodman is Australia's largest listed property group and already one of the region's biggest data-centre developers. Digital Realty is one of the world's largest data-centre owners. When two companies that build and run these sites for a living pay a 45.5% premium, the market reads it as an expert opinion on what NextDC's assets are worth.
Why NextDC was cheap
The stock lost 45.8% in October. On 21 October, NextDC reported a power delay at its M3 site in Melbourne, revised its FY27 guidance and shelved new developments and land purchases. About A$3 billion of market value disappeared in a single day. The buyers are betting that the problem is NextDC's timetable, not demand for data-centre space.
That's the bigger story for anyone following the AI build-out. NextDC was punished hard for a delay. This deal says that at least some of the industry's biggest players see the sell-off as a chance to buy capacity cheaply, not as a warning sign.
The risk: a stake is not a takeover
The board isn't welcoming it. NextDC called the move "opportunistic" and said it has received no takeover proposal.
The buyers say no bid, for now. Goodman and Digital Realty have no intention of making a control proposal "at this time," but kept the right to do so.
The price already assumes more. Trading touched A$9.52, above the A$9.50 offer. That suggests investors expect more than a 9.9% stake.
What would change the story
A formal bid would push the shares further. A firm "no" from the buyers, or more trouble at M3, would test the A$9.50 level the stake has set. Watch the next statement from either side.
For now, the market has decided that NextDC's bad October was a buying opportunity. Two companies that know data centres very well just agreed.
Sources: Reuters via SRN News (5 Nov); Investing.com (5 Nov); CNBC (5 Nov).