Rural services provider Conquest Agri has formally launched its takeover of Priority One Network – a loyalty scheme operator with links to Insured Group and JLT.

The two general insurance companies have signed an agreement with Priority One to provide income streams for it.

Priority One holds a 16% stake in Insured Group, and both companies are owners of Priority One Insured.

Queensland-based Conquest is offering one of its shares for every Priority One share, with a takeover target of 2.2 billion issued shares.

It already owns 60 million Priority One shares, giving it voting rights of 2.6%.

The Conquest bidder’s statement says Priority One will focus on selling loyalty schemes to large companies in the emerging markets of Brazil, India, China and southeast Asia.

This would include insurance services, although the statement gives no explanation of how this would be achieved.

Conquest Chairman Larry Shutes says the offer will allow Priority One shareholders to realise the value of their holdings.

Conquest shares closed at 2 cents on Friday. When Priority One tried to list on the Australian Securities Exchange last year its float price was 30 cents. 

The offer closes on November 3.