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
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