Investment Matters

Company news: Threat Protect, 360 Capital, Suncorp

Threat Protect released a positive Jun-17 quarterly report.  The company, which provides monitored alarm and other security related services, achieved record operational revenue, up 25% from the previous quarter.  Benefits of the now integrated Apollo acquisition, as well as organic growth, drove the revenue increase.  Scale benefits are also starting to flow through, with growth in the operating margin.  Net positive operating cash flow was $1.2m; a strong result.

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As mentioned last week, 360 Capital made a proposed takeover offer at $1.80 per security for Asia Pacific Data Centres (APDC, an Australian listed REIT).  APDC owns three strategic data centre properties in Melbourne, Sydney and Brisbane, which are leased to NextDC, an Australian listed data centre developer and operator.  

This week, NextDC came back with a counter offer of $1.85 per security, to bring back in-house the three properties it had previously owned.

We understand that 360 Capital was seeking to be long term investors in the data centre space - and saw growth opportunities in coming years.

If the NextDC proposal proceeds and 360 Capital accepts the offer, security holders in 360 Capital will get a windfall benefit.  360 Capital owns 19.82% of APDC, and would make a $6.38m or 17.8% profit on the investment in APDC it made on 1-May-17.  Whilst their holding in APDC would not end up being a long term investment, this is nevertheless a tidy short term profit.

There may be more water under the bridge (so to speak) on this one - we will obviously keep you informed of future developments.

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Suncorp's proposed takeover of Tower NZ has been blocked (not really unsurprisingly) by the New Zealand competition regulator.  Suncorp is reviewing the decision.  A special dividend may be on the cards instead ...