The final stage in the reinvention of struggling magazine and catalogue printer Ovato has been reached with scheme approval by the NSW Supreme Court.
The components include a $40m cash injection with major customer Are Media to own 22.9 per cent of the business, and the Hannan family's stake diluted to 50.7 per cent.
The cash comes from Are ($10 million), the Hannan family (an extra $25 million) and a new $17 million secured debt, leaving its net debt at $37.8-44.6 million, depending on the outcome of some leases.
New ordinary shares from an entitlement offer are to be issued on December 24, and will be traded from December 29.
Chief executive Kevin Slaven says the new equity and improved balance sheet will allow developments in data and bring new products to market. "Ultimately, we are now well positioned to evolve our business and place our focus on delivering a tangible difference for the brands that entrust their business with us."
Pictured: Kevin Slaven at the opening of the Warwick Farm supersite, just a year ago
How you can help us at GXpress.net
These are difficult times, and in order for us to continue to provide the
GXpress news service FREE, we ask you to please register here to join our newsletter list
(your email will not be passed to any third party, and you can unsubscribe later).
Please register even if you currently get the newsletter, to ensure continuity and stop these messages
|While we discontinued print editions at the end of 2018, you can still download back editions as PDF|
|Visit these dedicated online departments|
|INDUSTRY | DIGITAL | PRINT | JOIN GXpress (It's free)||© Copyright MPC Media, Pileport Pty Ltd. 2021|
You may not be getting all you can out of your browsing experience
and may be open to security risks!
Consider upgrading to the latest version of your browser or choose on below: