Ashley House PLC (LON:ASH) said it will proceed with a proposed merger with Midlands housebuilder Piper Homes after creditors and shareholders approved a company voluntary arrangement (CVA) over its assets.
The health and affordable housing property property developer said the combination with Piper would be via a reverse takeover or a similar deal.
Piper paid £50,000 to Ashley House to fund the initial costs of pursuing a takeover proposal and promised a further £50,000 once the CVA is approved and the 28-day challenge period has passed.
While this deal is worked on, the AIM-listed company said it will work with Piper to “continue to explore a number of property development projects”.
Trading in the shares, which were suspended in March, will remain suspended pending the reverse takeover, it added.