M&A Merger and acquisition
Biggest banking acquisition in Australia's history
Du : 16/09/2008
Australia's fifth largest bank, St George, has agreed a takeover by its larger counterpart Westpac Banking in a monster deal worth £8.06 billion.
The new deal has been revised several times, and now looks likely to proceed when St George shareholders vote on the proposal on 13 November.
In a joint statement, the Sydney-based banks said the takeover was approved by Grant Samuel, an independent expert hired by St. George to analyze the bid.
Mr Samuel said the offer was ‘fair and reasonable and in the best interests of St. George shareholders.'
Westpac will offer shareholders in its smaller rival 1.31 of its shares for every St George share, and St George shareholders will receive a further special dividend of 28 Australian cents per share up to a total of 160 million Australian dollars.
Chairman of St George, John Curtis, said, "The merger is a very positive outcome for the bank's shareholders."
Westpac chairman Ted Evans yesterday hailed the parties' renewed marriage vows, as well as a "fair and reasonable" recommendation for the deal from independent expert Grant Samuel.
"This will ensure that we realise merger benefits more quickly and work closely together to optimise customer retention," Mr Evans said.
Earlier this month, Australia's competition watchdog, the Australian Competition and Consumer Commission, said it would not oppose the merger, saying it was unlikely to substantially lessen competition in the banking sector.
The new deal has been revised several times, and now looks likely to proceed when St George shareholders vote on the proposal on 13 November.
In a joint statement, the Sydney-based banks said the takeover was approved by Grant Samuel, an independent expert hired by St. George to analyze the bid.
Mr Samuel said the offer was ‘fair and reasonable and in the best interests of St. George shareholders.'
Westpac will offer shareholders in its smaller rival 1.31 of its shares for every St George share, and St George shareholders will receive a further special dividend of 28 Australian cents per share up to a total of 160 million Australian dollars.
Chairman of St George, John Curtis, said, "The merger is a very positive outcome for the bank's shareholders."
Westpac chairman Ted Evans yesterday hailed the parties' renewed marriage vows, as well as a "fair and reasonable" recommendation for the deal from independent expert Grant Samuel.
"This will ensure that we realise merger benefits more quickly and work closely together to optimise customer retention," Mr Evans said.
Earlier this month, Australia's competition watchdog, the Australian Competition and Consumer Commission, said it would not oppose the merger, saying it was unlikely to substantially lessen competition in the banking sector.