Two Tasmanian heavyweights agree to merge
Shareholders in Tasmanian Perpetual Trustees and MyState Financial Credit Union of Tasmania are being asked to vote on a proposed merger that would rank the combined entity among the top 300 industrial companies listed on the Australian Securities Exchange (ASX).
MyState Financial is Tasmania’s largest financial institution while the ASX-listed Tasmanian Perpetual is the only private trustee company authorised to operate in Tasmania.
If the merger is approved, the new entity will be called MyState and will have a market capitalisation of $252 million, net assets of $154 million and net profits after tax in excess of $19 million.
Both parties also anticipate that a merger will allow them to deliver a greater range of products and services, including expansion into new markets.
They have also stated that they expect redundancies of 30 duplicated senior management and executive roles if the merger is approved.
As well as shareholder approval, the transaction also needs to receive approval from regulators and the courts before proceeding.
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