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The non-bank lender has received preliminary approval for its acquisition of a Queensland-based credit union.
Members of Maleny Credit Union (MCU) have voted in support of Firstmac’s proposed $7 million acquisition of the lender via a postal vote conducted ahead of a final vote to be held next month.
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Of the 42 per cent of MCU’s members who participated in the postal vote, 96 per cent voted in favour of the proposal.
MCU’s board previously expressed public support for the acquisition, claiming that it would “enable the significant value built up in MCU over its proud 34-year history to be realised for members and the community”, adding that it is “in a position to achieve what the board believes is an excellent outcome and a superior offer for members and the community”.
Following the postal vote, MCU chair Sarah Davies thanked members for their preliminary support for the acquisition.
“On behalf of the participating directors, I would like to thank everyone who voted for their support in this important process,” Ms Davies said.
“We believe that the proposed transaction will deliver a positive outcome for members and the Maleny community if it is approved by members.”
As part of the proposed offer, Firstmac will pay $7 million for the business once the transaction is approved, of which:
- $2 million will be paid to the Maleny Credit Union Charitable Trust to continue MCU’s funding and support of local community groups – plus at least an additional $30,000 to the trust annually based on branch profitability.
- Approximately $1 million will be used to pay back capital to MCU member investment share owners.
- Approximately $4 million will be available to distribute to MCU members, meaning each will receive a payment of about $1,200 once the transaction is approved.
Firstmac’s acquisition will take legal effect pending approval from MCU’s members following the second round of voting scheduled to take place in March.
During the second round of voting, members will be asked to vote on the scheme and the demutualisation of MCU, which together make up the formal proposal.
Both of these matters need to be approved by MCU members in order for the acquisition to go ahead, and for members and the MCU Charitable Trust to receive payment.
“The participating directors recommend that you vote in favour of the proposed transaction,” Ms Davies said.
“We believe that if the transaction goes ahead, it will secure the future of a genuine community-based banking service in Maleny that offers a real alternative to the big banks.”
[Related: Firstmac announce bid to acquire lender]
