Bravura's future control uncertain
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Financial services administration platform provider Bravura has admitted to shareholders that control of the company has the potential to change hands to private equity backer Ironbridge.
In a letter to shareholders released on the Australian Securities Exchange this week, Bravura chairman Chris Ryan explained that the possibility of a change in control would be owed to agreements entered into with Ironbridge as underwriter and in dealing with outstanding margin loans for the company’s joint chief executives, Iain Dunstan and Simon Woodfull.
“Depending on the extent to which shareholders take up their rights entitlements, whether Ironbridge exercises any of its options and whether Ironbridge enforces its security rights in connection with the proposed new margin loans to be made to Messrs Dunstan and Woodfull, Ironbridge could end up with a controlling stake in Bravura,” Ryan said.
He said the full spectrum of potential control outcomes would be disclosed in an explanatory memorandum to be sent to Bravura shareholders.
Shareholders are expected to be asked to vote on the new arrangements towards the end of next month.
AUTHOR
Mike Taylor
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