Xero (ASX:XRO) proposed to provide intra-group funding of up to NZ$450 million to Xero Trustee, its wholly-owned unit and trustee of the employee equity incentive schemes, to allow the unit to acquire fully-paid ordinary shares in the Xero on-market, according to a Wednesday Australian bourse filing.
It seeks to satisfy the firmʼs obligations to deliver shares under the firm's existing employee equity incentive schemes. The firm had provided initial funding of up to NZ$250 million, bringing the total cap to NZ$700 million.
The financial assistance arrangements arose in connection with the board's authorization to purchase shares in Xero on-market up to an amount equal to AU$550 million over fiscal 2027 to satisfy obligations under Xeroʼs employee equity incentive schemes.