FX and cross-border payments provider, Finablr, has announced a shareholding arrangement between Khaleefa Butti Omair, his Excellency Saeed Mohamed, and Dr. B.R Shetty. The arrangement is in line with their respective interest in the shares of Finablr, according to the announcement.

However, it’s not clear how the arrangement is going to reflect on their respective interests in the company. But Finablr has appointed a committee of directors to review the development before making an informed decision about the arrangement.

On the 24th of last month, BRS investment pledged 56.03% of Finablr. The pledge was a form of financial security, which would allow BRS to borrow some funds.

Finablr was notified of the arrangement on the 24th of January that about 392,220,800 shares, which represent about 56.03 percent of the company, have been pledged for borrowings BRS Investment holdings raised some time ago.

The borrowings were made from March 2016, and were utilized for the acquisition of a facility. The borrowings were used for the refinancing of the acquisition facility in relation to the acquisition of UXT Holdings limited, the company’s subsidiary. This acquisition was made on the 29th of January, 2015.

However, the borrowed amount is now less than the original amount because of sums received by BRS (3) Investment Holdings, BRS (2) Investments, and BRS (1) Investment. The money was received after the company raised funds through IPO offerings on May 20, 2019. The received amount also includes other cashflows coming to the company, which belong to the BRS group.

Finablr seeking classification

Finablr is seeking from BRS to clarify the state of the shareholding arrangements. The company is particularly reaching out to BRS board member Mr. Binay Shetty, Co-Chairman Dr. B.R. Shetty, as well as principal shareholders. However, the board members at BRS are assuring Finablr of the level of security its shareholding has in Finablr. BRS also assured that it has extensively discussed with the banking group about the arrangement. The discussions centered on the refinancing or repayment of the loan and other collateral sources in case it would be needed.

Although this move may seem to be a bit awkward to the common populace, the company’s statement shows it’s urging everyone that operations would not be affected. When Travelex was under attack recently, Finablr claimed the issue is under review and would be resolved soon. The company told customers and the general investing public that the attack would not occur again, and it would not have any meaningful impact on 2020 financial results.