ANZ puts trust in EQT

ANZ Trustees is set to merge with Melbourne-based Equity Trustees after the pair signed a heads of agreement that will produce Australia’s third largest trustee company and one of the biggest managers of charitable funds with a combined $800 million in assets.

Equity Trustees says the merger will boost operating revenue from $16.8 million to around $30 million, which will be sourced from four main areas.

The addition of ANZ’s core private client business will result in Equity Trustees taking on around $2.5 billion in combined client and beneficiary assets.

In addition to the private client business, other revenue earners from providing trustee services will flow from corporate and fund services, and include funds management, responsible entity and investments.

ANZ will receive $3 million in cash and will also take a 37.5 per cent stake in expanded issued capital of the listed group, making the bank the major shareholder.

Under the deal, two ANZ representatives have been given a space on the Equity Trustees board.

The merger, subject to approval by regulators, government and Equity Trustees shareholders is expected to be completed by early 2005.

ANZ group managing director strategic development Peter Hawkins say the merger will allow ANZ to retain a strategic interest in the trustee sector.

“We have reached agreement with Equity Trustees on the terms of a strategic partnership [that] will allow us to participate in their growth and also to contribute in the philanthropic work done by our clients’ charitable trusts,” Hawkins says.