Pyne Gould Corp (PGC) said good progress is being made on the merger of Canterbury Building Society (CBS) and Southern Cross Building Society (SCBS) with its finance unit Marac.PGC outlined the latest thinking on the structure of the new entity, which it
Pyne Gould Corp (PGC) said good progress is being made on the merger of Canterbury Building Society (CBS) and Southern Cross Building Society (SCBS) with its finance unit Marac.
PGC outlined the latest thinking on the structure of the new entity, which it described as a building society, while acknowledging its ambitions to be a bank.
The new merged structure would have an NZX-listed non-operating holding company.
Existing CBS and SCBS shareholders would be shareholders, along with PGC, who would be the major shareholder.
The holding company would own 100% of an operating group which would be a building society and would be made up of the businesses of CBS, SCBS and Marac.
"It has been Marac's stated ambition to become a registered bank. We see that merging with CBS and SCBS to create an entity with more than $2.2 billion of assets as a significant step towards that goal," PGC said in a letter to its shareholders.
Consolidation of the three businesses would provide the obvious market advantages and scale to drive further growth and shareholder value.
Both CBS and SCBS are long established building societies that bring added diversity to Marac.
