Holiday Coast and Regional Australia merger on track
A merger from July looks in the offing between Regional Australia Bank and Holiday Coast Credit Union.
In a member update this week the Wauchope, NSW-based Holiday Coast (the smaller of the two ADIs) set out a warm vision for one of the many credit union mergers underway this year.
On Tuesday 6 November 2018, the directors of both companies announced the commencement of merger discussions.
Allan Gordon, newly appointed chair of Holiday Coast Credit Union said that "from our initial discussions with Regional Australia Bank, it became very apparent that we share a similar strategic focus and a commitment to ongoing mutual values to underpin quality member service in banking".
Echoing the mantra of the RAB board, Gordon wrote that "it is noted that a commonality of purpose is an essential ingredient in any successful merger".
The combined entity would have an asset size of more than A$2 billion and, Gordon said it would "be focused on delivering upon merger, immediate tangible financial and non-financial benefits to existing members of both entities.
With greater product diversification, simplified fee structures and competitive pricing, members will enjoy an even greater, sustainable, customer owned banking experience."
Due diligence is done "and both mutuals are now undertaking the necessary steps to prepare the formal submission for Merger to the Australian Prudential Regulatory Authority and the Australian Securities and Investments Commission.
"We will be providing a detailed statement as to the merger and its benefits to members as part of the bundle of information that will be provided with the Notice of a Special General Meeting of Members expected to be held during May 2019," HCCU said.
Subject to the members of both organisations agreeing to the merger and the final APRA approval then the merger is expected to take place on and from 1 July 2019.
On that date Holiday Coast Credit Union CEO Neville Parsons will, as initially planned for that time, retire as CEO as he will have come to the end of his current contract for employment.
Kevin Dupe, the CEO of Regional Australia Bank will continue as CEO of the merged entity. RAB's Graham Olrich will continue as chair.
Three Holiday Coast Credit Union directors will transition to become directors of Regional Australia Bank. The three directors to be appointed will be determined by Regional Australia Bank's board.
"There will be no forced redundancies nor re-location of staff," Gordon added.
The 2 existing HQs "will continue to provide accommodation for administration staff and all Holiday Coast Credit Union senior staff (except as agreed, for departing CEO Neville Parsons)."