Equity Trustees letter explains takeover motives
The board of Equity Trustees (EQT) has confirmed that its current takeover offer for the Trust Company Limited was driven by the failure of earlier discussions to consummate a deal.
In a letter to Trust Company shareholders, released on the Australian Securities Exchange (ASX) today, the board said the combination of Equity Trustees and the Trust Company had been "discussed a number of times in the recent past" but that no agreement could ever be reached on the terms and conditions.
"As a result, EQT has now decided to put the offer directly to Trust Company shareholders," the letter said.
The letter went on to explain that the Equity Trustees board believed that the complementary nature of the two businesses would result in synergies of up to $8 million a year pre-tax.
Further, it said that by combining now, the companies could create a leading Australasian trustee services provider "that is better placed to thrive in today's competitive market".
The letter, signed by Equity Trustees chairman Tony Killen and managing director Robin Burns, said that if the takeover offer was successful the combined group would be led by the current Equity Trustees board and team, with Killen and Burns retaining their positions.
Recommended for you
Professional services group AZ NGA has made its first acquisition since announcing a $240 million strategic partnership with US manager Oaktree Capital Management in September.
As Insignia Financial looks to bolster its two financial advice businesses, Shadforth and Bridges, CEO Scott Hartley describes to Money Management how the firm will achieve these strategic growth plans.
Centrepoint Alliance says it is “just getting started” as it looks to drive growth via expanding all three streams of advisers within the business.
AFCA’s latest statistics have shed light on which of the major licensees recorded the most consumer complaints in the last financial year.
