The takeover of Priority One Network Group has moved a step closer, with agricultural services company Conquest Agri completing due diligence on the company.

Priority One holds a 20% stake in Perth broker Insured Group and has a service agreement with JLT.

It has also formed a joint venture company with Insured Group to sell insurance to cardholders of the payments platform. This company has never traded.

Conquest has a number of rural retail outlets selling agriproducts to farmers. It had a crop insurance subsidiary, but this entered administration in February last year.

Chairman Larry Shutes says Conquest intends to acquire 100% of Priority One.

It will prepare a bidder’s statement, a shareholder meeting and an independent expert’s report, because it is listed on the Australian Securities Exchange (ASX).

Under the deal Conquest will issue 9 million shares in exchange for Priority One’s 69 million shares.

When Priority One tried to raise $15 million for an ASX listing last year its shares were valued at 30 cents each. The prospectus was withdrawn after a few months.