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.
Recommended for you
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.
New Zealand’s financial regulator is following the footsteps of its Tasman neighbours and proposing to conduct a review on improving the accessibility of financial advice and advice business models.
