Australia’s Future Fund and listed trans-Tasman infrastructure investor Infratil have exercised their pre-emptive rights to acquire a 12.04% stake in CDC Data Centres (CDC) from Commonwealth Superannuation Corporation (CSC), valuing the business at A$13.7bn (€8.3bn).
Future Fund is acquiring an additional 10.46% of the shares in CDC, with Infratil buying the remaining 1.58% for about A$216m.
Upon completion, Infratil, Future Fund and CSC will own 49.75%, 34.55% and 12.04% of CDC, respectively. The CDC management, led by CEO and founder Greg Boorer will retain 3.66% of shares.
CDC is the largest operator and developer of data centres across Australia and New Zealand, with a total of 2.5GW of capacity across its operational, under construction and development pipeline.
Ben Samild, CIO of the Future Fund, said: “Our increased holding in CDC through both this share purchase and the recent capital raising reflects our considered views on the investment environment and will help us achieve our mandated target return of CPI + 4% - 5% over the long term.
“Infrastructure assets such as CDC provide attractive risk-adjusted returns and local currency exposure that protect the portfolio from volatile international conditions.”
James White, infrastructure director at Future Fund, said: “We have been an investor in CDC since 2019 and are supportive of its strategic direction and confident of its long-term growth trajectory.”
Infratil CEO Jason Boyes, said: “CDC has been one of our most successful investments, and this increased ownership reinforces our commitment to investing in ‘ideas that matter’. It reflects our strong conviction in CDC and the powerful tailwinds driving digital infrastructure.”
Boorer said: “Together, we will continue to execute on our growth goals and ensure that CDC continues to position ourselves for growth in relevant markets and consolidate our status as one of the premier partners to the world’s largest and most critical organisations. This transaction positions CDC perfectly to execute on our plans.”
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