Frontier Digital Ventures Ltd (ASX:FDV) is putting key leaders in place to advance its strategy across FDV LATAM, its Latin America-focused online marketplace.
Ricardo Frechou and Guillermo Tavidian will step up as CEO and CTO, respectively, leaving behind executive positions at Uruguay-based real estate consultant InfoCasas.
Thanks to the appointments, Frontier says smaller ventures like InfoCasas, Encuentra24, Fincaraíz and Yapo will operate as more integrated businesses under FDV LATAM, which will act as the parent company for the region.
Moving ahead, Frechou and Tavidian will spearhead the local leadership team with other executives from the four arms of the LATAM business.
Further down the track, the leadership team may consider bringing FDV LATAM to the Nasdaq.
“Opportunity to build a tech unicorn”
Frontier founder and CEO Shaun Di Gregorio said: “It is with great pleasure FDV announces Ricardo Frechou and Guillermo Tavidian have accepted new roles as CEO and CTO of FDV LATAM.
“These appointments continue FDV’s long association with Ricardo and his team, which continues to deliver significant value for shareholders.
“We are incredibly excited by the enormous opportunity ahead of FDV LATAM and our shared ambition in relation to future monetisation plans.”
Incoming FDV LATAM chief executive Ricardo Frechou said: “We would like to thank Shaun and the FDV team for the trust and confidence they continue to place in us. We see an enormous opportunity to unlock value in the Latin American region.
“The increased scale and profile of the combined business will fast-track both organic and inorganic growth and we are starting from a position of financial strength given FDV LATAM was operating cash flow positive in Q2 2022.
“We are incredibly excited about the opportunity to build a tech unicorn in LATAM, as reflected by the significant financial commitment we are making through the cash earn-out for equity exchange.
“We have an amazing local team currently running the businesses and we know a unified FDM LATAM with clearer monetisation plans will make us more appealing to other people and companies in the region.”
Cash earn-out for equity exchange
In addition to the leadership changes, key InfoCasas and Encuentra24 shareholders have agreed to exchange a minimum proportion of their expected future cash earn-out payments for equity in FDV LATAM.
Frontier says the cash earn-out for equity exchange represents a strong endorsement of the FDV LATAM strategy from local management and reduces the final contingent consideration payments for InfoCasas and Encuentra24.
Di Gregorio continued: “In parallel with these appointments and the evolution of FDV LATAM’s operating structure, the cash earn-out for FDV LATAM equity exchange aligns the FDV LATAM leadership team to the value creation plan.
“Today is a significant milestone in FDV LATAM’s journey and is in line with FDV’s long-term value creation strategy for shareholders.”
Read more on Proactive Investors AU
