Ovanti Revises A$10.8M IDSB Stake Sale to Bolster BNPL Expansion
- StockSurge Team
- Apr 1
- 2 min read
Ovanti (ASX: OVT), a fintech and digital commerce software provider, has announced a revised structure for the sale of its 21% stake in i-Destinasi Sdn Bhd (IDSB), a Malaysian mobile technology business, as it sharpens focus on its U.S. buy-now-pay-later (BNPL) ambitions. The updated deal reflects a strategic shift to balance immediate cash flow with long-term value retention.
Under the revised terms, Ovanti will sell 15.75% of its IDSB stake (2.52 million shares) for MYR 30 million (approximately A$10.8 million), while retaining 840,000 shares (5.25%). This follows an earlier plan, announced on August 20, 2024, for IDSB to buy back Ovanti’s full 3.36 million shares for MYR 40 million A$13.77 million).
The new structure allows Ovanti to secure significant non-dilutive funding while maintaining exposure to IDSB’s growth, which Executive Chairman Daler Fayziev described as a “strategic” move given IDSB’s improving performance and synergies with Ovanti’s operations.
The funds from the partial sale are earmarked to accelerate Ovanti’s entry into the competitive U.S. BNPL market, a key pillar of its growth strategy. Ovanti’s core platform, which supports mobile banking and digital payments for major Malaysian banks and telcos, positions it well to tap the U.S. market’s demand for flexible payment solutions.
Chairman David Halliday emphasized that the transaction marks “a major step forward” in realizing value from non-core Malaysian assets to fuel this expansion.
The revised deal, still subject to formal agreements, is expected to settle within 30–45 days. The decision to retain a smaller IDSB stake suggests confidence in its future upside, potentially through a later sale or partnership, though no such plans were disclosed.
Ovanti’s pivot comes amid a broader fintech sector push into BNPL, with global players like Afterpay and Klarna setting benchmarks. By leveraging its expertise in mobile technology and relationships with Southeast Asian institutions, Ovanti aims to carve out a niche in the U.S.
