mecu takes options on MyState

mecu has emerged as the owner of stake of 1.62 per cent in MyState, a now demutualised and ASX listed credit union.

MyState disclosed the mecu shareholding in the routine list of the top 20 shareholders in the MyState annual report, published yesterday.

mecu did not want to comment on the rationale for the investment yesterday.

Based in Melbourne, mecu is one of the largest credit unions and is progressively amalgamating with smaller credit unions. It most recently merged with Maroondah Credit Union in the city's eastern suburbs and RegionalOne, a credit union based in Bendigo and serving northern and western Victoria.

mecu has previously attempted to negotiate a merger with NSW Teachers Credit Union.

Paul Viney, chief financial officer of MyState, said the firm's contacts with mecu were the same as those as with any other major shareholder, and said mecu saw MyState as a good investment.

MyState holds aspirations to grow outside its home base in Tasmania. In the annual report the chair, Michael Vertigan, wrote that the financier will be "seeking to develop and grow in new markets".

The management commentary also highlights the development of "a capital management capability … supporting future growth opportunities, whether they are through organic growth, or significant strep out through acquisition."