Asia Pacific Digital, who has built an integrated digital services platform providing 360 degree digital services (strategy, technology, performance marketing, CRM and analytics), is rumoured to be circled by one of Australia’s large comm agencies.
An ASX announcement today revealed.
- These expressions of interest have been received from large corporates who see APD as a platform to serve their clients in the Asia Pacific region.
- The Company believes that corporate interest in APD validates its unique position, providing a single point of market entry into the fast-growing Asia Pacific digital economy, following completion of its major investment programme through FY16.
- Based on current industry dynamics and transaction evidence, Directors believe that a strategic partner is likely to attribute a higher value to the APD platform than the Company’s equity market capitalisation implies.
- The Board has authorised a formal process to test this thesis, and if demand is as anticipated, select a strategic equity partner to accelerate its expansion.
The Company has received informal expressions of interest to acquire a shareholding in its APD subsidiary. These expressions of interest are from large corporates who see APD as a platform to serve their clients in the Asia Pacific region.
It believes that APD can accelerate both its own growth and that of a strategic equity partner by providing a single point of market entry into the fast-growing Asia Pacific digital economy.
Asia Pacific Digital expects that this process has the potential to drive significant value into the APD platform and intends to remain a significant shareholder for the foreseeable future.
Based on recent transaction evidence in the sector, the Directors believe that a strategic partner is likely to attribute a higher value to the APD platform than the Company’s equity market capitalisation implies, and has the potential to deliver significant value to shareholders.
Commenting on the potential strategic partner opportunity, Chairman Roger Sharp said: “The Asia Pacific markets in which APD operates are expected to show high levels of growth for many years due to positive demographic trends. Asia Pacific Digital has invested in building a platform that is uniquely positioned to capture that opportunity at scale. We believe that a carefully structured partnership has the potential to deliver considerable growth to both APD and its selected partner.”