Lender takeover approved by members

Firstmac has announced that its bid to acquire Queensland-based lender Maleny Credit Union (MCU) for $7 million has received support from 98 per cent of the bank’s members, marking the successful completion of the scheme and “demutualisation” meetings.

The completion of the takeover is subject to Supreme Court approval, which is scheduled to be determined on 10 May.

“We would like to thank the MCU board and MCU members for their unwavering support of the proposed transaction and look forward to unlocking its substantial benefits for the community,” Firstmac said in a statement.

This latest development follows a preliminary postal vote held in February, in which 96 per cent of Maleny members approved 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, 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.

[Related: Firstmac one step closer to acquisition]