Why has this ASX 300 stock just been placed in a trading halt?

This ASX 300 stock is sitting out today's trading thanks to some big news.

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Woman holding out her hand, symbolising a trading halt.

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It's been a horror start to the ASX's Tuesday trading so far. After taking a tumble yesterday, investors are stepping down on the selling pedal today, with the S&P/ASX 300 Index (ASX: XKO) currently down a horrendous 1.49%. So investors in one ASX 300 stock might be glad that their company was suspended from ASX trade before market open this morning.

Yes, the Macquarie Technology Group Ltd (ASX: MAQ) share price closed at $77.21 a share yesterday. And that's where it will be staying, at least for a while.

In an ASX release earlier today, the ASX 300 stock confirmed that its shares won't be trading until at least this Thursday, 18 April.

Why? Well, Macquarie Technology has announced a major new set of acquisitions, as well as an accompanying capital raising.

ASX 300 stock halted amid new capital raising

According to Macquarie Technology, the company has entered into a binding agreement to acquire the Intellicentre 2 and Intellicentre 3 East land and buildings at its existing Macquarie Park Data Centre Campus from Keppel DC REIT.

Keppel is a Singapore-listed real estate investment trust (REIT). Macquarie Technology will pay Keppel $174 million for the two properties, with stamp duties and transaction costs bringing the total cost up to $190 million.

Macquarie Technology will fund these purchases using both an underwritten $100 million two-tranche share placement program, as well as a $90 million "data centre loan note".

Eligible Macquarie Technology investors will have the option of purchasing 1.38 million soon-to-be-issued new shares for a fixed price of $72.50 each. That represents a 6.1% discount to the last traded price of $77.21.

Here's why this ASX 300 stock told investors it is purchasing these assets:

  • Demand for the next wave of data centre capacity has arrived in Australia and the Acquisition strategically positions the Group to capitalise on the fast-growing cloud and artificial intelligence megatrends.
  • The Acquisition provides greater flexibility for the Group's future capital management and creates value over the long-term life of the asset and brings our strategy in line with our global peers.
  • Ownership of land and buildings gives us full control during the development phase of IC3 Super West, subject to regulatory consents for any amendments to the Development Approval…
  • The Acquisition strengthens the balance sheet, enhances the quality and longevity of the data centre asset whilst providing an opportunity for improved terms for senior debt upon refinancing.
  • Purchasing of the land and buildings also delivers on the expectations of some of our major customers who value our Australian ownership and Sovereign credentials.

Macquarie Technologies share price snapshot

The Macquarie Technologies share price has been a lucrative investment on the ASX in recent times. At its last price, this ASX 300 stock was up 14.39% over 2024 to date, as well as up 28.15% over the past 12 months.

Investors have also enjoyed a 292.13% return since April 2019.

At the current stock price, Macquarie Technologies has a market capitalisation of $1.88 billion.

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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