The parent company of dealer group Professional Investment Services (PIS) intends to form a new committee to help the company reduce costs and determine a future strategy for the group.
Professional Investment Holdings (PIH) has agreed to form the joint supervisory committee as part of key terms under a merger implementation deed executed yesterday with merger partner Centrepoint Alliance (Centrepoint).
"PIH will form a joint supervisory committee which will comprise equally of PIH and Centrepoint representatives," a Centrepoint company statement said.
"The joint supervisory committee will be mandated to determine the future strategy of PIH, including identification of cost reduction measures."
Among other terms of the deed, Centrepoint has required PIH and its representatives to abide by 'no shop' and 'no talk' restrictions.
After the merger, Centrepoint shareholders will hold 25 per cent and PIH shareholders will hold 75 per cent of the merged group.
The board of the combined entity will be composed of six members, with three representatives from each PIH and Centrepoint.
Centrepoint chairman, Rick Nelson, is expected to act as the merged company chairman until a mutually agreed independent chairperson is appointed.
Centrepoint managing director Tony Robinson will remain as managing director of the merged group.
The merger is expected to be completed by December this year.
