Merger Creates Leading Manager Foundations
Monday, 25th October 2004 at 1:10 pm
ANZ Banking Group Limited (ANZ) has signed a Heads of Agreement with Equity Trustees Limited (EQT) to merge ANZ’s trustee business with Equity Trustees creating Australia’s third largest trustee company and the country’s leading manager of charitable foundations.
ANZ announced that in consideration for its trustee business, ANZ will become the major shareholder in Equity Trustees with a 37.5% share of the expanded issued capital and will receive $3 million in cash.
It says the merged entity will be Australia’s largest manager of charitable funds with over $800 million in assets. The bank advised that its traditional role in the charitable trust sector will be maintained in the merged company through the formation of a new ANZ Philanthropy Board to oversee grants by the charitable trusts connected with Equity Trustees.
The ANZ group managing director of strategic development, Peter Hawkins says the merger would create a leading national trustee company and allow ANZ to retain a strategic interest in the trustee sector and in philanthropic activities.
Hawkins says the partnership will allow ANZ to participate in their growth and success and also to continue its involvement in the important philanthropic work done by our clients’ charitable trusts.
The Managing Director of ANZ Trustees, David Ward says that together the businesses will be stronger and enjoy the benefit of greater economies of scale than each of the current stand-alone businesses.
Completion of the merger is expected early in 2005 subject to the outcomes of due diligence, regulatory and government approvals and approval by Equity Trustees’ shareholders.