A number of shareholders at troubled Dublin-based electronic payments group Payzone have agreed to provide the company with €8 million in new funding.
The fundraising is being supported by private equity investor Balderton Capital, Payzone's largest shareholder.
It is understood, however, that chief executive John Nagle and chief financial officer John Williamson, who between them own about 11.5 per cent of the business and are in dispute with the majority of the company's shareholders, are not participating in the fundraising.
As a result, the pair could have their shareholdings in the company diluted.
It is believed that Balderton will not increase its stake above its current level of about 40 per cent as this would trigger a bid for the entire company.
A number of other shareholders in Payzone are believed to be supporting the cash call. The company's other leading investors are JO Hambro Capital Management, Artemis Investment Management; Goldman Sachs Asset Management and Cycladic Capital.
Payzone is expected to make an announcement on the fundraising to the stock exchange today.
Trading in Payzone's shares is not expected to recommence before it holds an extraordinary general meeting in Dublin on March 10th. The shares were suspended on January 17th pending the outcome of legal proceedings by Mr Nagle and Mr Williamson against the company. They won their High Court challenge to Payzone's decision to terminate their employment on January 15th. That decision had been supported by a majority of the company's shareholders.
On February 4th, a large block of shareholders requested an egm be held to dismiss them. The shareholders' meeting will also be asked to consider a motion to remove Bob Thian as chairman.
Payzone was created on December 5th by the merger of Irish e-payments group Alphyra with British ATM operator Cardpoint and listed on the Aim in London. Its shares were trading at 45.75 pence at the time of the suspension, compared with a price of 71 pence in early December.
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