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A little more on what Co-Investor intend to do with DPG


Co-Investor wants to restructure DPG
Posted on Wednesday, 14 August 2013 09:37

The major shareholder behind Digital Performance Group wants the Australian digital marketing provider to kick off a two-stage deal aimed at revamping the flagging business amid the protracted downturn in the domestic media market.

Co-Investor Capital Partners is proposing a restructuring aimed at giving the New South Wales-based investment holding company immediate exposure to higher growth Asian markets and expanding its geographical footprint.

The end game would be to increase the scale of operations, which would then hopefully bolster revenues and earnings.

Co-Investor is keen to point out that while DPG is working hard to deliver growth, the company is unlikely to attract suitable interest from possible backers without refining its strategic direction or an economic uplift.

With this in mind, the major shareholder is offering to hand over three wholly-owned businesses in return for equity issued at a price to be agreed upon.

For the past four years Co-Investor has been working to establish a leading regional electronic commerce group called Asia Pacific Digital.

The businesses acquired and built up under this umbrella collectively provide more than 1,000 clients with end-to-end ecommerce strategies, online customer acquisition and customer relationship management (CRM) tools and services.

Co-Investor said it makes sense to bring the five most interdependent companies within the overall group under the DPG listed structure in order to simplify the current ownership, among other things.

Under the proposal, the Sydney-headquartered online advertising campaign provider would acquire assets comprising Next Digital, Jericho, Asia Pacific Digital ecommerce and regional corporate operations in Singapore.

This would pave the way for an independent, end-to-end electronic provider of targeted individual services or bundled product sets.

Co-Investor noted the company would also be a leading creative-led and technology-driven digital agency.

Following the amalgamation, DPG will change its name to Asia Pacific. It will launch a fundraiser to finance expansion of its regional network, acquire or partner with data and analytics businesses and provide additional working capital.