NextDC is looking to wind up the trust underpinning Asia Pacific Data Centre Group (APDC), stating that it is unhappy with the direction that 360 Capital is taking the company under its steerage.
The move comes after a bidding war between NextDC and 360 Capital in recent months, which saw 360 Capital take control in November with 67 percent ownership, and subsequently install its preferred board members.
At the end of last week, APDC said it was conducting a strategic review and intending to proceed with new financing from BankWest and NAB that would amount to AU$100 million for three years, and have the facility completed before the end of 2017. APDC also said it intended to reinstate quarterly distributions.
Following these actions, NextDC has called for the wind up of the real estate trust that APDC is responsible for. NextDC retains a 29 percent stake in APDC.
"NextDC has elevated concerns over the governance track record of the 360 Capital Group, which now controls APDC, with limited true independent controls," NextDC said in a statement.
"The proposed capital distribution is not in the best interests of all security holders, as it would increase APDC's debt to imprudent levels and thereby significantly elevate its risk profile, reducing both the quantum and value of future distributions and restrict APDC's ability to fund growth initiatives."
NextDC said the distribution amounted to financial assistance, and, as such, requires 75 percent approval by security holders, excluding 360 Capital.
"Given actions to date, NextDC has no confidence that the 360 Capital-appointed board of APDC will seek the required security holder approvals before proceeding with the proposed capital distribution," it said.
NextDC said it would look to hold the wind-up meeting early in 2018.
The sole tenant of APDC's datacentre facilities in Sydney (S1), Melbourne (M1), and Perth (P1) remains NextDC.
Vodafone Australia will be hosting NFV equipment, bolstering its core network resiliency, and offering 4G mobile services to Western Australian customers through its point of presence in NextDC's Perth datacentre.
APDC's board is now in favour of 360 Capital's AU$1.95-a-share acquisition offer, a month after it approved counterbidder NextDC's offer.
NextDC's C1 datacentre sees the nation's capital link to Superloop's high-speed intercapital network.
NextDC has multiplied its profit over the year from AU$1.8 million in FY16 to AU$23 million in the most recent financial year.
Datacentre-as-a-service provider NextDC has received AU$300 million to boost its debt funding to AU$600 million.