Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi MM Team, GDC is seeking to sell its assets and wind up. Has been appreciating rapidly. Can you comment on assets and likely end value 2) Conversely OBL share price worse and worse. Seemed to have a monopoly/ niche position so why failing? Thank you, Paul
Hi Paul,
Global Data Centre Group (GDC) – GDC, was formerly 360 Capital Digital Infrastructure Fund held data centres, clearly a hot space, and they’ve done a good job of realising value that the market wasn’t offering by selling the underlying assets for a premium to the market price at the time. Their main asset was its co-controlled investment in European data platform Etix Everywhere which they are selling to French asset management company Infranity Equity Fund for around $175mn, which is worth $2.26 per share. In April, they also announced the sale of Perth Data Centre to an undisclosed buyer for $39m.
Based on the current market price, and considering they still have some debt, we think it’s now trading at fair value – i.e. the re-rate has now been fully realised. This was clearly a good strategy, if some of the property companies and even the LIC’s could sell-assets above the prices being applied by the market, a similar sort of SP reaction would play out.
Omni Bridgeway (OBL) – is not one we know that well, however they look to be still losing money and they’re balance sheet is questionable.
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