Craig is having a bad day / week / month and year.
“ The night before (September 8), local MP Katie Hall gave a speech to state parliament, zeroing in on #M3’s power lines. She called #NextDC’s behaviour a “shocking example of #corporate arrogance in my electorate”. Sources tell us she’d been working for months to bring in new data centre guidelines that could derail M3’s expansion. Hall was an influential voice because she’s not only the local member, but is also under threat from a Greens challenge at next month’s state election. The guidelines were subsequently introduced on September 22.
At this point, a more sensitive CEO might be feeling the heat. Maybe the market should know revenue guidance might be in doubt? Not #Scroggie; His bullish announcement of the converts (on the morning of September 9) was about “proactively enhancing” NextDC’s balance sheet.
By September 17, NextDC had the paperwork done, including for its “delta placement” – the important part of the convertibles that lets hedge funds lay off their exposure to the share price. And in the middle of all this (September 15), there was a council meeting which confirmed that development of the data centre was still paused.
From the bankers, to the analysts, to the bond investors, were any of them given a clue from NextDC that there was a probable #revenue loss coming? Why didn’t *the CEO’s army of #AI assistants* leap into action? The company’s share price going through the floor this week means the $1.1 billion in convertible bonds – cheap financing with a sweetener for investors just a month ago – are now an anchor. A busted convert.
Investors should want Scroggie’s head for this.”
‘ the CEO’s army of #AIAssistants’ indeed.
#Straya / #HyperScaler / #Power / #energy < https://www.afr.com/rear-window/the-month-when-craig-scroggie-lost-the-plot-20261022-p617pr> (paywall)