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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
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