Priority One Network Group has taken a reduced stake in Insured Group as part of a share swap between the two companies.

Last September Insured Group announced Priority One was taking a 51% stake in the company, but this has now been reduced to 16.67%.

Priority One, which is planning an Australian Securities Exchange listing, has issued 8,333,333 shares to Insured Group.

In turn Insured Group has issued 3,007,306 shares to the Melbourne-based electronic distribution business.

Insured Group MD Wayne Miller says both parties have now agreed to a smaller stake to grow the partnership.

“It is mutually beneficial to further grow the relationship by concentrating on the delivery of insurance and financial services through the joint venture company Priority One Insured,” he said. 

“No further investment in the company is planned by Priority One at this stage.”

Go Connect, another company Priority One has a partnership with, has announced that an information memorandum for the float is being prepared.

The Priority One board was expected to have approved the memorandum last week.

The company has established a delivery platform to provide products and services to its membership base of companies, unions, superannuation funds, associations, not for profit groups and member groups. 

Payment for products and services will be provided by a co-branded MasterCard Debit Card with Ezybonds Global Payment Systems enabling electronic global multi-currency payments.

Mr Miller says the joint venture is working on its insurance product for distribution through the delivery platform.