Equity Trustees letter explains takeover motives
The board of Equity Trustees (EQT) has confirmed that its current takeover offer for the Trust Company Limited was driven by the failure of earlier discussions to consummate a deal.
In a letter to Trust Company shareholders, released on the Australian Securities Exchange (ASX) today, the board said the combination of Equity Trustees and the Trust Company had been "discussed a number of times in the recent past" but that no agreement could ever be reached on the terms and conditions.
"As a result, EQT has now decided to put the offer directly to Trust Company shareholders," the letter said.
The letter went on to explain that the Equity Trustees board believed that the complementary nature of the two businesses would result in synergies of up to $8 million a year pre-tax.
Further, it said that by combining now, the companies could create a leading Australasian trustee services provider "that is better placed to thrive in today's competitive market".
The letter, signed by Equity Trustees chairman Tony Killen and managing director Robin Burns, said that if the takeover offer was successful the combined group would be led by the current Equity Trustees board and team, with Killen and Burns retaining their positions.
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