Broking and underwriting agency group Australian Consolidated Insurance Ltd (ACIL) has cleared a major hurdle in its plan to “reverse list” on the New Zealand Stock Exchange through the shell of financial services firm Lombard Group.

The deal has received approval from the New Zealand Stock Exchange and is now subject to Lombard shareholder approval.

Under the terms of the unusual proposal, Lombard would acquire 100% of ACIL unlisted ordinary shares and options, subject to final approval.

All ACIL business would become part of the NZX-listed entity Lombard Group.

Lombard is the parent of Lombard Finance and Investments, which went into receivership in 2008 owing $NZ127 million ($99 million) to about 4400 investors.

Last year ACIL claimed a listed entity would provide the company with access to “capital and market opportunities and shareholder liquidity”.

“Our group is confident of the opportunities which exist in New Zealand which make for ideal synergies with Australia,” ACIL Executive Chairman and MD Wayne Miller said last week.

ACIL claims the transaction would create the only NZX-listed general insurance intermediary group.