Tolhurst sale to Patersons approved

Patersons Securities will takeover the broking arm of Tolhurst whose shareholders today agreed to sell the business for $2 million, well below the figures originally mooted for the deal.

Both companies had already signed an agreement for the sale, which was subject only to the outcome of the Tolhurst shareholder vote this morning.

The deal has valued Tolhurst's broking business at between $1.9 million and $2.1 million, with Patersons shares priced at nearly 57 cents.

Tolhurst will receive between 3.33 million and 3.7 shares as initial consideration for the business, representing a holding of between 5.2 per cent and 5.8 per cent.

The merger was first announced in January, with Tolhurst valuing the deal at up to $12 million.