Stage 3

APIDT sold its address holdings in three separate stages via a Sale by Tender process.

In Stage 3, the block of address space being sold was subdivided into smaller blocks. Tenders could be submitted for one or more (or all) of these blocks.

Stage 3 is now complete.

Stage 3: 43.192/11

Block Size: /16

Number of blocks: 32


Tenders open:   12 October 2020
Tenders close: 30 October 2020 at 17:00 (UTC + 10)



Additional information for Tenderers, and questions received by the Trust via email (and the answers provided), are published below for transparency.

1. How does the Primary and Alternate Offer system work in Stages 2 and 3?

Under the APIDT Address Space Request for Tenders Process, (RFT Process) in order to generate an optimum return to support APIDT’s Objects, the tender price is a primary criterion in selecting successful Tenders, assuming that Tenderers are otherwise qualified to receive the transfer of the addresses under APNIC or APNIC NIR rules and there are no other material risks for APIDT in Tenderer’s offers. 

However, APIDT also recognises that for Stages 2 and 3 of the process, Tenderers may wish to make different price offers per address based on the amount of address space they may receive.

Accordingly, APIDT implemented a Primary Offer and Alternate Offer approach from Stage 2 onwards.

Tenderers may make a single Primary Offer, for example 16 blocks for USD$32 per address.  The total price for this offer would be 16 blocks x 262,144 addresses per block x USD$32 per address = USD$134,217,728.  If this offer resulted in the highest financial return to APIDT and meets all of APIDT’s other requirements, APIDT could simply accept this offer.

Tenderers may, but don’t have to, submit one or more Alternate Offers which APIDT may also consider.  There is no limit to the number of Alternate Offers a Tenderer may submit.

Each Primary or Alternate Offer is separate binding offer which APIDT may accept or reject.  Where a Tenderer submits an Alternate Offer for a range of blocks, APIDT may select any whole number of blocks in that range (inclusive) at the price specified in that Alternate Offer.

APIDT and its evaluators will evaluate all valid Primary Offers and Alternate Offers received in accordance with the evaluation process set out in the RFT Process, which requires the creation of a short list of Tender offers ranked on Tender price which results in the highest financial return for APIDT.

For example, if a Tenderer (Tenderer A) wished to acquire up to 16 blocks for USD$32 per address it would:

1. Submit a Primary Offer for 16 blocks at USD$32 per address; and

2. Submit an Alternate Offer for between 1 and 16 blocks at USD$32 per address.

In this scenario, if APIDT received another Primary Offer from a different Tenderer (Tenderer B) for 5 blocks at USD$34 per address, it could accept Tenderer A’s Primary Offer and the Tenderer B’s Alternate Offer for 11 blocks at USD$32 per address. 

Assuming both Tenderer A and Tenderer B have submitted a properly executed copy of the Standard Transfer Agreement, APIDT would issue both Tenderers with a Standard Transfer Agreement signed for APIDT and issue:

1. Tenderer A with an invoice for 11 blocks x 262,144 addresses per block x USD$32 = USD$92,274,688; and

2. Tenderer B with an invoice for 5 blocks x 262,144 addresses per block x USD$34 = USD$44,565,480.

On the completion date (30 days after the date of the Invoice, unless varied under the Standard Transfer Agreement), upon payment of the transfer price by each Tenderer, APIDT will then initiate the transfer of the relevant blocks to Tenderer A and Tenderer B.

2. Will a tenderer be required to enter into the “Standard Transfer Agreement” before it submits its tender? If a tenderer does not accept all terms of that “Standard Transfer Agreement,” can a tenderer submit different mark-ups to the agreement?

The tenderer is not required to accept all the terms of the “Standard Transfer Agreement”. The tenderer is able to send a mark-up of the “Standard Transfer Agreement”, or use its own form of agreement. However, if it does so, then the tenderer’s proposed agreement will be evaluated against other competing tenders, and compared against the “Standard Transfer Agreement” as part of the evaluation process. Further, if the terms of the tenderer’s proposed agreement are such that they are considered unacceptable, then the tender will be discarded.

3. Will there be an opportunity for the tenderer and Trustee to discuss/negotiate the tender?

While the Trustee reserves the right to negotiate with any short-listed tenderer, it is not the intention of the Trustee to invite negotiations. Tenderers should proceed on the basis that their offer will be considered as their final offer, and the Trustee will make its selection accordingly.

4. When a Stage is completed, will the specifics of the winning tenders be made public (i.e., price, number of blocks, identity of the winning tenders)?

When a Stage completes, and the transfer of the addresses is registered (with either APNIC or an APNIC NIR), the registry will display details of the new holder of the address resources, as is the current practice of APNIC and APNIC NIRs. The trustee does not intend disclosing the transaction price for individual blocks of addresses.

However, for transparency the Trustee may disclose the total amount raised from any stage, if this does not disclose the amount paid in individual transactions. The Trustee does intend to disclose the total funds raised after the entire sale process of all three stages is completed.

5. How much is the tender bond, and does the address space have a reserve price?

There is no tender bond; and there is no reserve price.

6. Can you advise whether we can meet and negotiate?

While the Trustee will reserve the right to negotiate with any short-listed tenderer (among other things), it is not the present intention of the Trustee to invite negotiations. Tenderers should proceed on the basis that their offer will be considered as their final offer, and the Trustee will make its selection accordingly.

7. According to the Request for Tender, the payment needs to be made within 30 days after notification of a successful tender.  It may take time however to arrange this. Is it acceptable if payment in made within 30 days upon the invoice issued?

Tenderers may propose a variation to the payment provision (such as 30 days after issue of invoice, instead of 30 days after notification). However, any variation will be evaluated and assessed, and compared with other competing tenderers.

8. In respect of the execution process of the Standard Transfer Agreement, I understand as part of a valid tender we are required to submit electronically an agreement that is executed in PDF format.  Is a wet signature required for execution or would a corporate chop be an option as well?

APIDT simply requires execution in a form which is binding and enforceable, according to the laws of the company’s incorporating jurisdiction. A wet signature is not necessary (unless required by law in the incorporating jurisdiction), and a corporate chop may be affixed although not necessary (unless required by law in the incorporating jurisdiction).

9. If we have submitted an executed Standard Transfer Agreement in previous stages and do not win related bidding, will this executed agreement continue to be valid and applicable in Stage 3 tender submissions? Or do we need to submit an executed agreement together with each tender submission?

An executed Standard Transfer Agreement for Stage 1 or 2 is only valid for the particular stage it was submitted for (ie. either Stage 1 or 2). If you are not successful in the previous stages, then any agreement submitted was destroyed at the end of the tender process for that stage. Separate executed documents will need to be submitted for Stage 3.