Struggling web developer APD doubles after takeover bid from Trimantium
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Newly listed marketing agency Trimantium GrowthOps (ASX:TGO) has made a $20 million all-scrip takeover bid for web developer Asia Pacific Digital.
Loss-making Asia Pacific Digital (ASX:DIG) has been looking for a suitor since losing its major client Ford which it said in February had “negatively affected four consecutive reporting periods”.
APD shares doubled to 12c by 1.15pm AEST.
Asia Pacific — which is headed up by Webjet chairman Roger Sharp — reported a 16 per cent drop in revenue to $19.2 million and a $2 million loss for the December half.
Today Asia Pacific endorsed the Trimantium bid which offers one TGO share for every 8.9 APD shares based on TGO’s June 14 closing price of $1.23.
That represents a 133 per cent premium to APD’s price of 6c at the time — valuing the target at about $20 million, TGO said. APD’s current market cap is about $8.5 million.
Melbourne-based Trimantium listed in March after raising $70 million in an IPO selling shares at $1 apiece to fund at least eight technology businesses.
Five of those acqusitions have since been completed and the stock has reached as high as $1.39.
Mr Sharp said: “This transaction provides APD’s shareholders, employees and customers with the opportunity to continue their digital transformation journey with a more complete suite of services and a broader and deeper skill base, with the benefit of a stronger balance sheet.
“We see APD and GrowthOps operating a world-class business together.”