Australasia takeover target wins new deals
- 21 June, 2011 19:55
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Australasia Consolidated (ASX:AAO) announced its takeover target, electronic payment company Emerchants, has won four new significant contracts.
Emerchants, a provider of pre-paid financial cards, has signed deals with Monadelphous Group, GoodStart Childcare, Cardno and City Finance.
Australasia Consolidated in May arranged to acquire Emerchants and shift its focus to the financial services market.
The purchase price will be $2.5 million in cash plus 75 million shares, vesting in three years.
Emerchants' new contracts include taxi card and MasterCard products, and other services related to corporate expense management, gift cards and loyalty rewards programs.
Emerchants also recently secured a contract with Optus dealer Telechoice.
Australasia Consolidated managing director Bob Browning said Emerchants' new deals “validate our decision to acquire the company.”
The acquisition requires shareholder approval, as it would result in a change of activities (from gold and copper exploration) for Australasia Consolidated.
AAO shares fell 3.03% in Tuesday's trading to $0.160.
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