- Novatti Group (NOV) will buy a 15 per cent stake in fellow ASX-lister Reckon (RKN) using funds from an upcoming capital raise
- The fintech stock is yet to say how much its planning to raise but revealed it expects to spend $17 million buying a share of Reckon
- That works out to $1 per share, a premium on the software company’s current share price of approximately 93 cents per share
- Full details of the capital raise will be announced by Friday, while NOV says buying a stake in RKN is a “strategic” decision
- NOV shares are in a trading halt until July 2, and last traded at 64 cents each
Novatti Group (NOV) will buy a 15 per cent stake in fellow ASX-lister Reckon (RKN) using funds from an upcoming capital raise.
NOV hasn’t stated how much it was planning to raise but did reveal it plans to pay $17 million to acquire the stake in the accounting and print software business.
This will see NOV buy 17 million RKN shares at a price of $1 per share, a premium to Reckon’s current share price of approximately 93 cents per share.
Explaining the decision to invest in the company, Novatti Managing Director Peter Cook said it was a strategic decision.
“We are delighted to have secured a strategic stake in ASX-listed Reckon,” Mr Cook said.
“Reckon has a steady revenue and earnings profile, with over 100,000 customers in its business group.
“The business has strong cash flow generation, has significantly paid down its debt and historically paid sustainable dividends to its shareholders.”
NOV placed its securities in a trading halt on Wednesday, with the full details of the capital raise to be released by Friday, July 2.
That’s the last day the company’s trading halt would remain in effect.
Novatti Group’s shares last traded at 64 cents each on Tuesday, June 29.