EFTPOS (Electronic Funds Transfer at Point of Sale) terminals in use in a central Auckland shop.The Cadmus terminal (left) and the Provenco terminal. Photo / Martin Sykes
Cadmus shareholders will get a slightly improved deal in their proposed merger with Provenco, under a new deal announced today.
A new share ratio for the proposed merger has been agreed by both companies, exchanging 4.2 Cadmus shares for one Provenco share against the old ratio of 4.6
to one.
Despite this, Cadmus shares were down 1 cent to 9 cents, while Provenco shares were up 1 cent to 41 cents today.
The companies said they were close to finalising documents for shareholder meetings.
The merger of New Zealand two main eftpos equipment suppliers has been approved by the Commerce Commission.
Independent expert Grant Samuel has indicated, in a draft report provided to both companies, that it considers a ratio of 4.2 to be fair to shareholders.
Grant Samuel's report said both sets of shareholders are likely to be better off from the merger.
Rick Christie, chairman of the proposed board, said the new ratio reflected changes in both companies and their operating environments.
"The merger ratio has been altered to reflect the trading of each company in the four months since the proposed merger was announced.
"In particular, for Provenco shareholders, it reflects the volatility of the international operating environment of that company's retail automation division."
Merger documents will be sent out in mid-March and shareholder meetings for both companies will be held in early April.
- NZPA
