Allied/LongReach merger gets go ahead

Allied/LongReach merger gets go ahead

Merger expected to see LongReach shareholders surrendering three shares for a single Allied share

The Federal Court of Australia has approved the merger of systems integrator, Allied Technologies Group, with LongReach Group.

Allied executive chairman and managing director, Michael Addison, said the merger would see LongReach shareholders surrendering three shares for a single Allied share.

"The overall effect is that LongReach shareholders will be receiving about 52.8 per cent of the enlarged share capital," he said. "Despite this, I will remain as managing director of the company and William Masson will remain as CFO."

Addison said it was too early to start discussing any changes for the company - such as what to call the new entity - until the first meeting of the new board took place on November 21.

"We have a market capitalisation of less than $1 million and under current government and regulatory regimes it's very difficult to commercially justify our compliance costs," he said. "One of the objectives of this merger is to double our market cap and achieve economies as a listed company, such as paying for one ASX listing instead of two."

Allied and LongReach share a number of clients, notably in the Federal Government, including the Department of Defence and Department of Foreign Affairs and Trade.

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