Damba buys into Beauty

Damba made a stand in the market for shares in BDO at the end of last week and now holds 11.4% of the company, which it purchased at an average price of 8.5 cents per share.

On Friday Damba announced it plans to change its name to Cube Capital and to broaden its investment base. It currently owns office furniture manufacturing and marketing businesses in Australia and New Zealand.

The company says Beauty Direct stake represents an opportunity for its investment team of Ian Smith and Simon Wallace to work with Bronwen Evans, CEO and MD of Beauty Direct, to help her further the gains already made with the company.

"Additionally Smith and Wallace will screen investment approaches already received or anticipated, given Beauty Direct has an investment fund of $2.1m, held in the Beauty Direct holding company," the company said in a statement.

"The fund will be used to make astute investments through cash and/or scrip offers."

Both Damba executives have been invited on the BDO board, with Mr Smith to be elected chairman, subject to shareholder approval.

Shareholders will also be asked in a postal ballot to approve an option to Damba to subscribe for up to 2.8 million shares at 9 cents each.

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