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Velpic shareholders approve sale of Velpic business and change of company name

The Velpic business is being sold to Damstra Technology Pty Ltd while the name is being changed to VPCL Limited.
Merger and acquisition sign
Approvals are granted at extraordinary general meeting

Velpic Ltd (ASX:VPC) shareholders have approved for the sale of its Velpic business to Damstra Technology Pty Ltd as well as a change in name to VPCL Limited.

The approvals were granted by a show of hands at an extraordinary general meeting of shareholders today.

READ: Velpic secures better offer for the sale of its customer book and intellectual property

Velpic recently received an offer from Damstra Technology Pty Ltd to purchase its customer contracts in a deal valued at about $3.8 million.

This offer was superior to that of Go1 Pty Ltd and resulted in the agreement with Go1 being terminated as it was not willing to match the Damstra offer.

Deal valued at about $3.8 million

Damstra’s offer provides for a payment of $1 million up-front, with additional deferred consideration of about $2.8 million.

As well as the Velpic customer book, Damstra will also acquire all Velpic platform intellectual property, seeking to sub-let Velpic’s Subiaco premises and acquiring the Velpic business name.

At the time, Velpic said it would continue to actively seek new investment opportunities, and also seek out opportunities for the sale of its other divisions and investments.

READ: Velpic substantial holder Merchant Opportunities Fund lifts stake

Velpic’s substantial shareholder Merchant Opportunities Fund recently lifted its stake in the company to 8.84% through on-market purchases.

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