PAG subsidiary to acquire assets and business.
Data centre company DXN is selling all its “businesses and assets” to PAG-owned company Flow2Edge Australia for $26 million.
The company made the announcement to the Australian Securities Exchange on Friday afternoon.
In a cashflow report late last month, DXN indicated its business was cashflow negative, which it attributed to delayed projects because of component shipping delays; vendors responding to their supply shortages by switching to upfront payments; and capex required for upcoming projects and the launch of a cloud product.
DXN said it intends to use the proceeds from the transaction with Flow2Edge Australia to repay its debts “and make a distribution to its shareholders”.
Flow2Edge was established by PAG in late 2021 to invest and operate “key physical assets that constitute the digital infrastructure ecosystem”.
A share placement worth an estimated $2.1 million will fund DXN’s operation until the transaction is completed, with DXN lender PURE Asset Management committing to take 70 percent of the placement.
DXN’s announcement said it had breached financial covenants that it had signed with PURE in 2021.
The sale has the unanimous support of DXN’s directors, and will require Foreign Investment Review Board (FIRB) as well as shareholder approval.