DEPOSED PAYZONE chief executive John Nagle has boosted his stake in the electronic payments company ahead of its planned share issue.

It emerged yesterday that Mr Nagle, one of two executives recently sacked by shareholders, bought 3.822 million shares in the company this week, increasing his holding to 33.64 million.

The purchase increases his share of the company to 11.08 per cent from 9.83 per cent.

The move is seen as a way of preventing his holding from being diluted if the company's proposed rights issue goes ahead.

Mr Nagle is not expected to participate in the rights issue.

The company is proposing to raise €40 million by issuing 137 million new shares and a further 5.5 million preference shares.

It is planning to put the proposal to shareholders at an extraordinary general meeting in the Davenport Hotel, Dublin, on Monday, June 16th.

Last March, shareholders voted to sack Mr Nagle and chief financial officer John Williamson.

Payzone produces technology that provides services such as chip-and-pin over-the-counter payments for credit and debit cardholders. The company was formed last year by the merger of Irish business Alphyra and British operator Cardpoint.

Following Mr Nagle's departure, the company appointed former BT Ireland executive Mike Maloney to the top job.

The company recently said it expected to lose €30 million this year. At the time, Mr Maloney said that, following a troubled period, Payzone was in a position to cash in on its strong market positions in Europe.

Payzone has a three-year growth plan and intends to use the cash raised to strengthen the business and invest in future growth.