DXN Limited, a prefab data center company, has decided to keep its data center operations with the revision of its previously announced agreement with the local affiliate of Singapore-based FLOW Digital Infrastructure.
DXN announced in August that it will be selling to Flow2Edge all of its business assets as well as its subsidiaries TAS01 Pty Ltd, Secure Data Centre Pty Ltd, and the SDC Unit Trust for $26 million.
According to the announcement, DXN plans to pay down debt, distribute shareholder dividends, and fund working capital for the data center business with the money raised from the sale of the EDGE module manufacturing company.
Following the fulfillment of the agreement with FLOW, DXN underlined that it intends to keep looking for ways to “extract value for shareholders” from the data center industry.
However, due to DXN’s “inability to satisfy the conditions precedent” to its sale agreement with the subsidiary, Flow2Edge Australia Pty Ltd, the new $20 million purchase will solely involve DXN’s EDGE module manufacturing company (trading as FLOW).
According to the statement of Shalini Lagrutta, DXN Limited chief executive, that was sent to CRN, it’s a good deal for DXN shareholders and also for its employees. The team is looking forward to growing DXN’s edge modular offering across APAC once the deal closes.
An update on the revised proposal will be presented to shareholders at a general meeting on the transaction that is scheduled for late October 2022. Before the modification, the general meeting was originally scheduled to take place in late September.
The shareholder vote will take place somewhere in late November, and the deal is anticipated to close on 15th of December.
In August, in what many considered a a surprising development, DXN announced its intention to sell all business assets and subsidiaries to Flow2Edge Australia