The Nisa-Today's board has unanimously approved a revised deal which would see its members retaining a 60% share in the new company, up from the previous 51% that was believed to have been on offer.
The five executive directors of Nisa-Today's are expected to receive 10%, Costcutter 20%, and Icelandic investment bank Kaupthing, which already has a significant minority shareholding in Costcutter, will get 10%.
Prior to the board meeting, press speculation suggested that Nisa-Today's founder Dudley Ramsden was losing faith in the plan, entitled Project Tomorrow. However, a statement from the board claimed that Rams- den both proposed and voted for the resolutions of support of the deal.
Meanwhile, rebel members group the Nisa Members Association (NMA) remains strongly opposed to the proposals and claims to have forced the board to withdraw a plan to sell and leaseback the 628,000sq ft ambient warehouse in Scunthorpe, known as Project Vision.
Prior to the latest board meeting, the NMA sought to take out a High Court injunction against the sell-off. The rebels have declared that they will take whatever action is necessary to protect the interests of the shareholders.
NMA chairman Mark Proudfoot said: "We have sent a very strong message. What we have done bodes well for the future."
The sale and leaseback of Project Vision is now expected to form part of the wider merger proposals, which will be voted on by members in October.