Why this should rise10 Sep 2010 16:09
Why are the Landers & Thain interested in DXR?
A few people think they are simply interested in the cash that DXR currently hold and future cash from French Tax Recoveries.
However its common belief that this is not the case and the Landers have already stated their intentions in their letter to DXR shareholders. They state "If we are appointed we will seek to maximise shareholder value, whether by returning cash to shareholders, and/or a reverse takeover of the Company or otherwise".
From my conversations with both Lander brothers it is my belief that a dividend could be paid to shareholders and an acquisition reversed into DXR. Current cash is estimated at 2.5p per DXR share and the 1.5p per share dividend touted by the previous board could be honoured by the new board.
As for the acquisition reversal, it is believed that Interactive Prospect Targeting (IPT) is the "special one". When Volvere acquired IPTH from "DXR" in Sep 2008, the then CEO Lionel Thain followed the business to VLE. Under Thain and VLE's guidance the business has been transformed. Intially VLE bought 100% of the business but it is currently 50% owned by VLE and IPT management.
Revenue and profits for the first half of 2009 were £5.2m and £1m. IPT recently paid a £1m dividend to VLE and management and has paid back all loans to management and VLE. So why reverse this business into DXR?. Well in simple terms VLE's share price is well below their current cash position and all of the VLE business portfolio is "in for free".
Crystalisation of IPT into DXR is essential for future growth and fund raising.
Lionel Thain has unfinished business and DXR is his vehicle to rebuild IPT into the UK's leading online marketing company.
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