Members clear MyState demutualisation

MyState Financial will demutualise with support from 84 per cent of members voting at a special meeting of the credit union in Hobart yesterday.

MyState will merge with Tasmanian Perpetual Trustees, an ASX listed company, assuming shareholders in the latter agree at a special meeting today in Launceston.

PKF Corporate Advisory estimated the value of the merged entity at between $200 million and $211 million, which gives a theoretical value per MyState Limited share of between $2.97 and $3.14, or approximately $1129 to $1193 for a parcel of 380 MyState Limited shares.

Credit union demutualiations are rare in Australia. An effort by Connect Financial, a predecessor of MyState, failed narrowly in 2003.

StateWest Credit Society demutualised in 2007 in order to merger with Home Building Society, before the expanded entity sold itself to Bank of Queensland.