Demutualisation worth $1,160 to MyState members

PKF Corporate Advisory produced a slightly higher estimate on the value arising from the merger of MyState Financial, the largest credit union in Tasmania, with Tasmanian Perpetual Trustees.

PKF 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. MyState published the estimate in the information booklet for members of the credit union yesterday.

Deloitte, in a corresponding report to shareholders in TPT two weeks ago, effectively valued the merged entity at $194 million. Members of MyState and shareholders in TPT will vote on the proposed merger in a month.

For members of MyState the proposal requires that they first agree to demutualise the credit union. MyState was formed from the merger of Connect Financial and Island State in June 2007.

Almost 36 per cent of the population of Tasmania have accounts with MyState. There is one other small credit union based in George Town, Heritage Isle, while one building society, B&E, is the other deposit-taking mutual trading on the island.

Source: The Sheet