Heartland bank’ merger crosses first hurdle

Heartland bank’ merger crosses first hurdle

Nov. 22 (BusinessDesk) – The proposed Pyne Gould Corp.-led merger for a South Island-based bank has crossed its first hurdle with shareholders in Southern Cross Building Society giving the nod to the deal.

Almost 99% of SCBS shareholders signed off on the deal, which will fold SCBS and Canterbury Building Society into a new entity with Pyne Gould’s Marac Finance Ltd., though a quorum for depositors wasn’t met.

“This is a very pleasing result and a positive endorsement of the proposal to create a New Zealand owned listed banking and financial services group through the merger between ourselves and CBS Canterbury and Marac,” chairman Geoff Ricketts said in a statement.

The merger is scheduled for early February, 2011 and will see the two building societies holding 14.5% each, according to previous statements, while Marac will hold nearly three quarters.

Pyne Gould plans to distribute most of its stake in the entity if the merger is successful.

The three companies had total assets of $2.2 billion at June 30 of which $289 million was shareholders' equity. SCBS is controlled by Oceania and Eastern Ltd., a private investment vehicle for Ricketts, Robin Congreve and Chris Mace, which has 28% of the building society.

(BusinessDesk) 16:28:25

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