DXN sells its business and assets to Flow for $26M

Credit: Photo 56111899 © David May | Dreamstime.com

Publicly listed pre-fabricated modular data center specialist DXN has sold its business to Flow2Edge Australia for $26 million.

DXN will use the proceeds from the transaction to repay its debts and make a distribution to its shareholders estimated to be the range of $0.011 to $0.013 per share, representing an estimated premium in the range of 88 per cent – ​​123 per cent on the three month average price of $0.006 as of 4 August.

DXN told shareholders the final distribution was not certain as it depends on matters such as the time between announcing the transaction and completion, the ultimate cost of the transaction as well as repaying its $4 million debt facility.

The transaction is subject to conditions by the Foreign Investment Review Board and DXN shareholders, which will decide at a general meeting in late September.

DXN chairman John Baillie said he did not take the decision lightly.


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