AFTERPAY MERGER WITH TOUCHCORP GIVEN THE GO-AHEAD BY FEDERAL COURT

AFTERPAY MERGER WITH TOUCHCORP GIVEN THE GO-AHEAD BY FEDERAL COURT

AFTERPAY Holdings Limited (ASX: AFY) has been given the green light by the Federal Court for its merger with Touchcorp Limited (ASX:TCH) which will create a new entity on the ASX.

The court approved the scheme of arrangement between Afterpay and its shareholders, part of the overall merger between Afterpay and Touchcorp under a new holding company, Afterpay Touch Group Limited (ASX:ATP).

The court ruling is an important step in Afterpay's merger with Touchcorp, the company behind Afterpay's technology.

Speaking to Business News Australia in the lead up to the merger, CEO Nick Molnar said it was a natural partnership.

"Touchcorp built our technology from the start and we share an office in Melbourne, so it's really a natural evolution of the relationship," says Molnar.

"We're really excited to begin working more closely with the Touchcorp team, and it's really about how we continue to grow and accelerate growth on the back of both companies being one company."

The Afterpay system allows retailers to sell their apparel on a "buy now pay later" basis in exchange for a small fee to Afterpay on each transaction. It has large clients such as Myer , Big W, Officworks and Woolworths on its books.

Once Afterpay lodges the court orders with ASIC later today the Afterpay scheme will become legally effective.

After this occurs Afterpay's shares will be suspended from trading with effect from the close of trading on the ASX today.

Afterpay will apply to the ASX to be delisted shortly after the implementation of the scheme.

Business News Australia

 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

The cost of not communicating: How Whispir’s tailored messaging tech lifts engagement
Partner Content
While it is common for businesses to haggle with suppliers over small price differences...
Advertisement

Related Stories

Carsales.com announces $1.2 billion raise to fully acquire Trader Interactive

Carsales.com announces $1.2 billion raise to fully acquire Trader Interactive

Vehicle classifieds company Carsales.com (ASX: CAR) has announ...

Audit uncovers multiple failures in Federal Government’s $484m Entrepreneurs’ Programme

Audit uncovers multiple failures in Federal Government’s $484m Entrepreneurs’ Programme

A review of the Australian Government’s $484.2 million Entrep...

JOLT, Endeavour Energy to install 1,000 free EV charging stations across Western Sydney

JOLT, Endeavour Energy to install 1,000 free EV charging stations across Western Sydney

More than a year after striking a deal with power provider Ausgrid ...

Blackstone completes $8.9b takeover of Crown, its “largest investment to date in Asia”

Blackstone completes $8.9b takeover of Crown, its “largest investment to date in Asia”

The long-awaited and heavily-scrutinised takeover of casino and hot...