APDC says 360 Capital’s proposal not good enough

The directors of Asia-Pacific Data Centre (APDC) have continued to recommend the securityholders vote against the proposal to externalise its responsible entity (RE) to 360 Capital FM, as the APDC board has not received a proposal from 360 Capital Group that is “capable of consideration”.

360 Capital announced that, together with unnamed capital partners, it was considering making an acquisition of APDC securities.

However, according to the APDC’s board, 360 Capital had not made any commitment to put any proposal to APDC securityholders and its announcement only provided APDC securityholders with “a clear example of the inherent conflicts in 360 Capital’s approach to governance.”

Additionally, if 360 Capital did put forward a proposal, its subsidiary, 360 Capital FM, whose directors were identical to 360 Capital, would be responsible for responding to that proposal.

Any such proposal would be conditional on a change of the RE to 360 Capital FM.

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APDC’s independent chairman, Ian Fraser, said: “Not only is there no commitment to make a proposal, 360 Capital’s announcement demonstrates the shortcomings of its approach to good corporate governance”.

“Whilst the APDC board remains open to proposals to maximise securityholder value, that process should be administered by an independent board, free from the inherent conflicts of interest represented by considering a proposal from a related entity.”