A new bank to form from the planned merger of the financial services of Marac, CBS Canterbury and Southern Cross Building Society has been endorsed in an independent report, which declared it logical and coherent.The report, co-authored by investment bank
A new bank to form from the planned merger of the financial services of Marac, CBS Canterbury and Southern Cross Building Society has been endorsed in an independent report, which declared it logical and coherent.
The report, co-authored by investment banking companies Cameron Partners and Northington Partners, stated the case for the planned merger appeared robust.
“The merits of the merger for each of the merging entities… appear compelling and the basis on which the exchange ratio has been established is fair to the shareholders.”
Chairman of the merged group, currently called Building Society Holdings, Bruce Irvine said the findings of the report provided valuable validation of the decision to pursue the merger.
“Each of the merging entities has undertaken extensive due diligence and evaluation and have concluded that [it] is value enhancing and compelling for all the parties,” he said.
Cameron and Northington’s report stated the merger would deliver a strong market position, better opportunities for growth and more access to funding.
Shareholders will be asked to vote on the proposal at meetings starting on November 22 with the merger expected to take effect on January 7 next year.
Following that, an NZX listing is planned for early February.
