Second MYOB founder boosts Xero holding

Brad Shofer has joined his MYOB co-founder Craig Winkler as one of Xero’s top 20 shareholders

Brad Shofer has joined his MYOB co-founder Craig Winkler as one of Xero’s top 20 shareholders, but has asked the company not to disclose the extent of his increased shareholding publicly yet.

However the figure will be disclosed in Xero’s next annual report, due in about May, says director Graham Shaw. Xero publishes annually information on its 20 largest shareholders.

In the 2011 report, the holdings of the top 20 range from Rod Drury’s representatives at 23,644,022 shares and Winkler at 19,500,000 down to Binalong Rural Pty Ltd with 333,333 shares.

The move follows a $20m private placement last week and the announcement of a share purchase plan (SPP), Xero facilitated on and off-market trades totalling $5m after being approached by institutions and strategic investors.

Shofer took the opportunity to increase his small shareholding. His purchase was valued, like the other transfers, at $2.75 per share. “Xero has been one of the companies I have watched closely over the past few years,” he is quoted as saying in Xero’s announcement. “I have used the software myself and been very impressed with it and with the company as a whole and its overall strategy and approach. Xero has executed well on its promises and is uniquely placed with early-mover advantage in a space that has the potential to be very lucrative for those who get it right.”

Shofer left MYOB in 2004, but has maintained a keen interest in the development of SME accounting and in cloud computing.