South Perth-based point-of-sale technology developer Intellect Holdings Ltd and New Zealand's Cadmus Technology Ltd will revise the structure of their merger, following a series of negotiations between the companies.
A joint announcement from the companies said it had become apparent the best outcome was for Intellect to sell its core payment terminal business and take a shareholding in Cadmus.
Intellect chairman Warren McLeland said his company was pleased with the outcome of the negotiations and believed the revised structure was better for shareholders.
"Cadmus will now acquire 100 per cent of the payment terminal business of Intellect through the acquisition of the shares held by Intellect in Intellect International," he said.
"Intellect will undergo a name change (as the Intellect name will be transferred to Cadmus with the payment terminal business) and become a technology investment company with an immediate focus on the payment sector. Its key assets will be a 39 per cent shareholding in Cadmus and a 26 per cent shareholding in TAFMO. Intellect will have three Directors appointed to the Cadmus Board."
The Boards of both companies expect to enter into a formal Share Sale Agreement in the next 14-21 days.
Intellect had previously announced plans for a wholly owned subsidiary of Cadmus acquiring all shares, options and convertible notes, with holders acquiring 3.33 Cadmus shares for every share held, with a similar arrangement for notes and options.
