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The proposed merger between Auswide Bank (Auswide) and MyState Limited (MyState) has been given the green light by the federal Treasurer under the Financial Sector (Shareholdings) Act 1998.
While the proposed merger is still pending approval from shareholder votes, Auswide managing director Doug Snell shed some light to Broker Daily in regard to their third-party strategy going forward.
“We are excited to have received the Treasurer’s approval for our proposed merger with MyState Bank. We have the opportunity for shareholders to vote for the scheme at our EGM on the 3rd of Feb and the Court approval hearing on the 7th Feb to complete the process,” Snell said.
“Both Banks understand the importance of the broker network and the value it provides for distribution of mortgages as well as introducing new customers and customer relationships.
“Our intention is continuing to invest in this channel building deeper relationships with individual brokers and their aggregators through technology and more relationship managers on the ground.”
MyState managing director & CEO Brett Morgan said: “This is a significant milestone in our plans to grow the combined businesses into a stronger and larger regional bank.
“The combination of two high-quality and complementary businesses is consistent with the growth strategies of both organisations and brings scale advantages to the Group.”
Morgan further said that plans for the integration of MyState and Auswide are “well advanced”.
“We are confident the proposed merger will deliver substantial benefits to customers and shareholders,” he said.
Should the merger go ahead as planned, Morgan will be at the helm of the merged group, while Auswide chair Sandra Birkensleigh will be in charge of the board.
The merger is expected to be completed on 19 February 2025. MyState is set to acquire 100 per cent of the fully paid ordinary shares in Auswide by way of a scheme of arrangement (Scheme) as described in the Scheme Booklet in relation to the Scheme released to the ASX on 23 October 2024.
The approval from the Treasurer follows a delay in the proposed legal merger, which was expected to be completed in December 2024.
In a statement released by Auswide, the delay came as the two entities continued to progress the “relevant applications with regulators”.
Snell said at the time that it was essential that they “remain focused on supporting [their] customers, partners, people and local communities”.
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