The controversial £200 million merger of grocery wholesaler Nisa-Today’s and convenience store group Costcutter is hanging in the balance ahead of a critical board meeting this week.

Nisa-Today’s executive chairman Dudley Ramsden stands to receive a £9m pay-off in cash and shares after he agreed to renounce an executive role in the deal.

The pay-off forms part of new merger proposals, which could lift the potential stake in the business for Nisa-Today’s shareholders to 60 per cent and see each shareholder receiving up to £50,000 in cash, outlined by Icelandic investment bank and Costcutter stake-owner Kraupthing.

The additional stake in the business will be partly financed by the proposed sale and leaseback of Nisa’s £41m distribution centre in Scunthorpe.

Under the latest offer, Ramsden is to be replaced as chairman by Edwin Booth, chairman of regional supermarket group Booths and a member of Nisa’s executive board.

Ramsden is likely to be offered the role of president, and Colin Graves, Costcutter chief executive, will become chief executive of the merged group.

But the proposed merger has faced opposition from The Nisa Member’s Association (NMA).

The rebel group has claimed the merger will endanger the decision-making powers of shareholders and fears that the sale and leaseback of the distribution centre before the merger could unfairly influence the outcome of a shareholder vote.

The NMA has the support of round 30 per cent of Nisa shareholders which could enable the group to block the merger with Costcutter if it is put to a shareholder vote.

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