CDC Independent Valuation – 31 March 2025

As a result of the transaction announcement in February, the primary valuation methodology applied by the independent valuer at 31 March 2025 was adjusted from a Discounted Cash Flow (‘DCF’) approach to a Historical Transaction approach. After being provided details of the outcome and nature of the sale process conducted by CSC, the valuer confirmed their view that the transaction met all criteria to be considered fair market value and subsequently adopted A$13,701 million as the mid-point of its independent valuation.

This implies that Infratil’s 48.17% investment in CDC is now valued at between A$6,066 million and A$7,208 million (with a midpoint of A$6,600 million), up from A$4,485 million to A$5,385 million (with a midpoint of A$4,924 million) at the end of December 2024.

As communicated in February, Infratil agreed to acquire approximately 1.58% of CDC’s ordinary shares for ~A$216 million, with Future Fund acquiring the remainder (10.46%) of the 12.04% stake being sold by CSC. The transaction was secured under CDC’s pre-emptive rights regime, following a competitive international bidding process run by CSC. Completion of the acquisition is subject to customary closing conditions, including Foreign Investment Review Board (‘FIRB’) approval. Financial close is expected in the second half of 2025.

Given the historical use of DCF as the primary methodology, a secondary cross-check using this approach was also conducted and resulted in an implied cost of equity of 11.1%, down from 12.5% as assessed in December 2024. The decline in the implied cost of equity can be attributed to a decrease in gearing across the forecast period (given the increase in equity value), as well as a reduction in the asset-specific risk premium. The risk-free rate, asset beta and terminal growth rate remain unchanged.

The growth forecast underpinning CDC’s build capacity to FY2034 remained largely unchanged from December 2024, with the exception of the completion of extensions to two of CDC’s data centres in Auckland. This increased CDC’s operational capacity by a further 16MW to 318MW and continues to demonstrate CDC’s strong track record of delivering projects on time and to budget.

Region Status Build Capacity (MW) to FY34,
as at
31 December 2024 Build Capacity (MW) to FY34,
as at
31 March 2025
Canberra Operating 117 117
Sydney Operating 123 123
Melbourne Operating 34 34
Auckland Operating 28 44
Total Operating Capacity 302 318
Canberra Under Construction 39 39
Sydney Under Construction 158 168
Melbourne Under Construction 121 121
Auckland Under Construction 70 54
Total Under Construction Capacity 388 382
Canberra Future Build 93 93
Sydney Future Build 879 869
Melbourne Future Build 630 630
Australian Expansion Future Build 36 36
Auckland Future Build 126 126
Total Future Build Capacity 1,764 1,754
Total Capacity 2,454 2,454

In line with prior communication, Infratil expects to commit a further A$250 million within the next 12 months to continue to fund the expanding development pipeline.


Enquiries should be directed to:

Mark Flesher
Investor Relations
Email: [email protected]
Authorised for release by:

Andrew Carroll
Infratil Chief Financial Officer
 
Appendix 1 – Independent Valuation Summary 31 March 2025
Valuation Methodology 31 March 2025 31 December 2024
Primary valuation methodology Historical Transaction
(with a cross check to DCF, comparable companies and precedent transactions) DCF using FCFE
(with a cross check to comparable companies and precedent transactions), surplus and underutilised land at cost
Forecast period 30 years (2055) 30 years (2055)
Enterprise value A$17,264 million A$13,399 million
Equity value A$13,701 million
(IFT share: A$6.600 million) A$10,223 million
(IFT share: A$4,924 million)
Net debt including accrued RMS payments A$3,563 million A$3,176 million
Key Valuation Assumptions
Risk free rate 3.90% 3.90%
Asset beta 0.575 0.575
Cost of equity
(blended rate) reflecting the assessed risk of the spectrum of CDC’s activity, from operating data centres with contracted revenues through to developing projects without contracted revenues. 11.07% (Implied) 12.50%
Terminal growth rate 2.5% 2.5%
Long term EBITDA margin 83% (2055) 83% (2055)
Capex
Future capex reflects CDC’s published development pipeline Valuation assumes no development beyond 2040 Valuation assumes no development beyond 2040

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