Industry on guard over new StateGuard owner
The financial services industry could learn the proposed new owners Melbourne-based StateGuard Friendly Society by the end of this week.
Substantial offers for StateGuard are known to have come from Commonwealth Bank and rival Melbourne-based friendly societies Australian Unity and IOOF.
StateGuard director John Rawlings confirmed that the tender for StateGuard had closed but would not comment on when a board decision on the new owner is likely.
"The board is working to bring the future of the society to a solution - and that will be shortly," he toldMoney Management.
The StateGuard board had originally planned to demutualise and sell to the Commonwealth Bank, an institution it has had a long association with. That vote was scheduled for the society's AGM just before Christmas, but IOOF and Australian Unity subsequently both made merger offers.
At an acrimonious meeting, members were told the demutualisation vote had been postponed while the new offers were reviewed.
Commonwealth has offered members a special bonus of $2.2 million and distribution of the $2.7 million StateGuard management fund.
IOOF managing director Rob Turner says his society is offering a $5 million bonus plus the distribution of the management fund.
"We believe our offer is fair and equitable and will offer the (StateGuard) members a good deal," he says.
Australian Unity initially offered a $3.5 million special bonus and distribution of the management fund. Managing director Mark Sibree then toldMoney Managementthat Australian Unity has revised its offer downwards but would not reveal the exact amount.
"Our first offer was based on public information about StateGuard, but now that we have seen later accounts, we've sharpened our pencils a bit more," he says.
Commonwealth and IOOF have offered to manage StateGuard's $456 million worth of funds in StateGuard in their internal fund management operations. Australian Unity has offered to keep the bank as the fund manager if it wins, although Sibree says this is just one options in the offer.
After the board has nominated a winning bid, a vote of members must approve either a merger with one of the bidding friendly societies or a take-over by the bank. That meeting is expected in late February.
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