Keycorp shareholders have given the go ahead for Telstra to acquire 50.2 percent of the smartcard technology company, in return for Telstra's EFTPOS payments business.
Keycorp shareholders endorsed the long-awaited deal at an extraordinary General Meeting in Sydney today.
Under the deal, Telstra will subscribe for 38.7 million Keycorp shares, and the subscription money will be used to acquire Telstra's EPTPOS payments business, which has been valued at more than AU$425 million dollars.
Keycorp and Telstra will enter into ongoing commercial arrangements under which Telstra will provide network carriage and installation and maintenance services to support the operation of the EFTPOS business under Keycorp's ownership.
Using Keycorp as the vehicle, both companies will develop a global full service end-to-end Internet payments business.
Keycorp designs, manufactures and markets electronic commerce transaction solutions.
The company's products have been installed in more than 50 countries, including Turkey, Brazil, the United Kingdom, Canada and Hong Kong.
