Ovanti set for 21pc stake sale in Malaysian finance firm, eyes US BNPL move

Ovanti receives formal acceptance to sell 21% stake in Malaysian firm i.Destinasi.Sdn Bhd (IDSB) in share buy back
Fintech will use the ~$13.77m funds towards its goal of entering US market with a BNPL offering
New CEO and former Zip Co US CFO Simon Keast has a mandate to launch Ovanti’s BNPL offering in the US

Special Report: Fintech Ovanti has provided an update on the sale of one of its Malaysian assets as it looks towards its goal of entering the US market with a buy-now, pay-later (BNPL) offering.

Ovanti (ASX:OVT) said it had received formal acceptance from i.Destinasi Sdn Bhd (IDSB) to proceed with the sale of its 21% stake in the business, pending finalisation of formal documentation by both parties.

OVT said since the company’s previous announcement in August discussions had advanced, and the transaction would now involve IDSB buying back OVT’s 3.36 million shares.

IDSB will buy the shares – representing 21% of IDSB’s total issued capital – for RM40,000,000 (~A$13.77m at the current exchange rate).

Based on current discussions, OVT said it expected settlement to occur within the next 30 to 45 days.

Major step forward

Chairman David Halliday said OVT would continue to work with IDSB to negotiate and execute the formal documents needed to settle the sale.

IDSB is a specialised finance company focusing on providing instalment-based consumer credit services to civil servants for and on behalf of Malaysian banks.

“This is a major step forward in realising value for one of Ovanti’s Malaysian, non-BNPL assets,” he said.

The funds from a successful sale will provide significant, non-dilutive funding towards OVT’s goal of entering the US market with a BNPL offering.

“Ovanti will keep the market informed of any material developments, including the execution of formal documents, as they arise.”

Expansion of BNPL offering to US

OVT soared 225% on October 17 after announcing the appointment of former Zip Co US CFO Simon Keast as its new CEO with a mandate to launch its BNPL offering in the US.

With his senior operational experience and strong market knowledge to draw upon, Keast has been tasked with leading the launch of OVT’s BNPL offering in the US.

With reference to Keast, Halliday said that the appointment of someone with the level of his standing in the BNPL sector gave great credibility to the company’s renewed BNPL business and ambitions to enter the US market.

“We are excited to re-launch our BNPL offering with entry into the US market with such deep potential to win market share in various segments of the US market presently under-serviced by the large incumbents,” said Halliday.

Keast, Halliday and non-executive director Greg Woszczalski attended the Money 20/20 Fintech Conference in the US at the end of October.

The global fintech event brought together top leaders in payments, banking and financial innovation with the trip aiming to expedite OVT’s launch of BNPL services in the US market in 2025.

The OVT representatives targeted private meetings and sessions with payment providers, funding platforms, credit agencies, banks and affiliates.

This article was developed in collaboration with Ovanti, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.