Oakajee to sponsor new ATM float

Perth-based Oakajee Corporation's subsidiary, Oakajee Investments, has announced plans for a $3.4 million initial public offering and listing on the Australian Securities Exchange as part of an agreement to acquire ATM business EZE ATM.

Terms of the acquisition include the issue of 20 million Oakajee Investments shares, of which EZE ATM will transfer 10 million shares to Oakajee Corporation in repayment of a $2 million debt.

A priority offer of 10,000 Oakajee Investments shares will be made to Oakajee's Australia-based shareholders on the record date of July 8.

Completion of the transaction is conditional on Oakajee raising the $3.4 million, listing on the ASX and receiving shareholder approval.

Oakajee Investments will be renamed EZE ATM once the transaction is completed.

EZE ATM owners Todd and Chad Zani will remain on the board of the new entity.

EZE ATM operates 86 automatic teller machines deployed in Western Australia, South Australia, Queensland and Victoria, generating more than 650,000 transactions each year.

Current average net revenue per transaction is more than $1, Oakajee said.

Oakajee Corporation, which is in no way linked to the Oakajee Port and Rail infrastructure consortium, currently holds a portfolio of diversified assets; including 2.95 million shares in Kingrose Mining worth around $4.4 million; 2.8 million shares in Elemental Minerals worth around $5.5 million; and a lease to extract, manufacture and supply reconstituted limestone from the Mid-West.

"Oakajee intends to maintain is existing listed securities investments and to continue with a pre-feasibility study into the development of the limestone lease," Oakajee said in a statement released today.

"Upon shareholders approving the transaction, Oakajee will continue to pursue active and passive investment opportunities that will create shareholder wealth."