MyState Financial and its partner Tasmanian Perpetual Trustees will sell the latter's half share in the Tasmanian Banking Services joint venture to Bendigo and Adelaide Bank for between $5 million and $7 million, the information booklet for the merger of MyState and TPT shows.The Launceston-based TPT (listed on the ASX) plans to merge with the Hobart-based MyState (a credit union), folding together two of the few remaining, home grown financial services operating in the relatively parochial state market.Improved distribution, leading to reduced costs, is one of the rationales for the merger, though TPT has agreed to cede control of its own foray into banking services. Bendigo will have to find new outlets for the Tasmanian Banking Services business that operates out of six of the nine Tasmanian Perpetual branches in the state.TPT valued its half share of TBS at $2.3 million at June 2008. The joint venture produced revenue of $9.6 million and profit of $2.1 million for TBS. The assets and loans under management of the joint venture are not clear.The new look MyState Financial - which will be a non-operating holding company having the two operating businesses as separately regulated subsidiaries - will have a loan book of around $1.5 billion, annual operating earnings of around $19 million and equity of around $179 million, assuming the merger was effective at the end of 2008, pro-forma accounts published yesterday show.MyState and TPT expect to generate savings from shared services of between $3.5 million and $4.5 million over three years, equal to one third of the cost base of TPT or equal to seven per cent of the non-interest cost base of MyState.In a report published with the booklet yesterday, Deloitte valued TPT at between $3.10 and $3.50 a share now and at between $3.60 to $3.90 a share if merged with MyState, an effective valuation on TPT of $63 million.Members of MyState - which must first demutualise - will own 67.5 per cent of shares in the new company. Shareholders of TPT will own 32.5 per cent.