NextDC Ltd (ASX: NXT) shares have ripped more than 40% higher after it emerged that Goodman Group Ltd (ASX: GMG) and New York-listed Digital Realty Trust Inc. (NYSE: DLR) had staged an aftermarket raid on the company's shares.
NextDC said in a statement to the ASX that the two companies had, on the evening of Wednesday, 4 November, sought to buy up to 9.9% of NextDC's shares on issue at a price of $9.50 per share.
The NextDC share price surged 42.6% on the news to be trading at $9.31 on Thursday morning.
NextDC noted it did not know the outcome of the attempted share raid.
Image source: Getty Images
Competitors buying the dip
The two buyers have taken advantage of the steep sell off in NextDC shares in the past couple of weeks after the company announced a major earnings downgrade on 21 October, related to an inability to get power to its M3 Melbourne data centre.
NextDC said on Thursday that the two companies had said through their brokers that they did not intend to make a takeover bid, but that they reserve their right to do so.
NextDC added:
The Board considers this an opportunistic move by Goodman and Digital Realty. The share raid comes two weeks after NextDC's 21 October 2026 announcement of the M3 Melbourne power delay and revised FY27 guidance, and was made through an aftermarket book build open only to institutional investors. The Board is not in possession of any takeover proposal at this time. Any bona fide approaches will be considered by the Board on their merits and in the best interests of all NextDC shareholders. At this time, NextDC shareholders do not need to take any action in relation to this announcement.
Companies only need to launch a full takeover bid once their ownership stake exceeds 19.9% of another company.
NextDC has appointed Barrenjoey and UBS as advisers, indicating it could be preparing a takeover defence.
Market likes the deal
Goodman Group shares were 4.4% higher on Thursday at $28.04.
Goodman did not make any statement to the ASX following the share raid.
Goodman put out a quarterly update on Wednesday in which it noted that the data centre business was complex and difficult to do well, requiring strategic sites in major cities, power availability and planning consent.
The company's financial and operational strength set it apart, it said in the statement, and it had $19.7 billion worth of work in progress globally.
Brokers divided on NextDC shares
UBS released a new research note on NextDC shares on 29 October, with a price target of $18.50.
In contrast Morgan Stanley has a price target of just $6.70.
Foolish takeaway
NextDC certainly seems to be in play here, with Goodman and Digital Realty taking advantage of share price weakness to build a stake.
This won't be the last we hear on this front.
