The protracted merger between Kiwi payment technology companies Cadmus and Provenco has taken a step forward.
Independent expert Grant Samuel has indicated in a draft report that a share ratio for the proposed merger of 4.2 Cadmus shares for each Provenco share is fair. The merger proposal has already won Commerce Commission clearance. The two NZX-listed companies are close to finalising documents for shareholder meetings, a statement released today says. The draft report also says that both Cadmus and Provenco shareholders are likely to be better off if the merger is implemented. In October 2007 shareholders were presented with a ratio of 4.6 Cadmus shares to one Provenco share. Rick Christie, chairman of the proposed board, says 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," he says. He expected merger documentation to be issued in March to shareholders of both companies.