Announcement • Feb 20
MyState Bank Limited completed the acquisition of Auswide Bank Ltd (ASX:ABA) in a Merger of equals transaction. MyState Bank Limited entered into Binding Scheme Implementation Agreement to acquire Auswide Bank Ltd (ASX:ABA) for approximately AUD 200 million in a Merger of equals transaction on August 19, 2024. Consideration will in the form of shares issued. MyState Limited will exchange 1.112 per share to acquire Auswide Bank Ltd in a merger of equals, implying a ~34% pro forma ownership by by Auswide shareholders and ~66% by MyState shareholders. In a Concurrent transaction MyState will also acquire Selfco. Termination fees for the said transaction is set at AUD 2 million.
Sandra Birkensleigh will be appointed the Chair of the MyState Board and Chair of MyState Bank Limited. As per the announcement dated November 28, 2024 the Supreme Court of New South Wales Court has today made orders to postpone the date of the Scheme Meeting at which Auswide Shareholders will vote on the proposed Scheme. The Scheme Meeting has been postponed from December 2, 2024 to February 3, 2025.
Transaction has already been approved unanimously by MyState Limited and Auswide Bank Ltd board of director's. The transaction is subject to approval from Auswide shareholder approval and court approval of the Scheme, Regulatory approvals (including APRA and Federal Treasurer approvals), Transaction is subject to MyState Limited's shareholders. The Proposed Merger is expected to deliver significant value for shareholders with greater than 20% EPS accretion in FY25. Auswide is pleased to announce that approval has been obtained pursuant to section 14 of the Financial Sector (Shareholdings) Act 1998 (Cth) (FSSA) for MyState Limited (as the non-operating holding company) and MyState Bank to hold a 100% stake in Auswide; and consent has been granted under section 63(1) of the Banking Act 1959 in relation to the Scheme. The relevant instrument in relation to the FSSA approval is expected to be gazetted and take effect in the coming days. Receipt of these approvals is a condition precedent to implementation of the Scheme. Auswide shareholders will vote on the proposed scheme of arrangement at a meeting to be held on February 3, 2025.
Gresham Partners Limited acted as Financial advisor to MyState Bank Limited Ord Minnett Limited and Flagstaff Partners Pty Ltd acted as financial advisor to Auswide Bank Ltd. HWL Ebsworth Lawyers Pty Ltd acted as legal advisor to Mystate Bank limited. King & Wood Mallesons, Australia Branch acted as legal advisors to Auswide Bank Ltd. As of October 23, 2024, Auswide will be delisted from ASX. Australian Competition and Consumer Commission does not intend to oppose the proposed Scheme.
MyState Bank Limited completed the acquisition of Auswide Bank Ltd (ASX:ABA) in a Merger of equals transaction on February 19, 2025. All Auswide shares have been transferred to MyState Bank and Auswide is now an indirect wholly owned subsidiary of MyState. Eligible Auswide shareholders have today received 1.112 New MyState Shares for each Auswide Share they held on the Record Date, as of 12 February 2025. Ineligible Foreign Shareholders will receive their pro rata share of the Proceeds under the Sale Facility, expected to be by no later than 19 March 2025. On completion, with effect on and from the implementation of the Scheme: (i) Brett Morgan has been appointed as Managing Director and Chief Executive Officer of Auswide; (ii) Vaughn Richtor, Sibylle Krieger, Andrea Waters and Warren Lee have been appointed as nonexecutive directors of Auswide; (iii) Sandra Birkensleigh remains as Chair and Jacqueline Korhonen and Gregory Kenny remain as nonexecutive directors of Auswide; (iv) Grant Murdoch, Cameron Mitchell and Lyn McGrath have resigned as non-executive directors and
Doug Snell has resigned as Managing Director of Auswide; and (v) Gary Dickson has been appointed Chief Financial Officer of Auswide. Buy Or Sell Opportunity • Jan 13
Now 21% undervalued Over the last 90 days, the stock has risen 13% to AU$4.63. The fair value is estimated to be AU$5.88, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 20%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 27% per annum over the same time period. Buy Or Sell Opportunity • Dec 27
Now 22% undervalued Over the last 90 days, the stock has risen 14% to AU$4.70. The fair value is estimated to be AU$5.99, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has been flat over the last 3 years. Earnings per share has declined by 20%. For the next 3 years, revenue is forecast to grow by 11% per annum. Earnings are also forecast to grow by 27% per annum over the same time period. 
