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Merger expands bank’s Queensland footprint

Merger expands bank’s Queensland footprint

Auswide Bank has acquired a professional credit union in Queensland in a cash and scrip deal, marking the first such merger in more than a decade.

Firms: King & Wood Mallesons (Auswide Bank Ltd); Bright Corporate Law (Your Credit Union)

Deal: Auswide Bank has acquired and merged with Your Credit Union in Queensland.

Value: $32 million (approximately)

Area: M&A

Key players: The King & Wood Mallesons team advising Auswide Bank was led by Brisbane-based partner Rhys Casey. Solicitors Akshay Naran and Stephanie Courtice also supported the deal, with Philip Pan and Natalie Caton assisting with scheme court process and Katrina Parkyn on tax.

Deal significance: Auswide Bank’s acquisition of the professional credit union was completed by way of demutualisation and a scheme of arrangement. The cash and scrip deal marks the first Australian merger between a listed bank and mutual authorised deposit-taking institution (ADI) in more than a decade.

The newly acquired Queensland Professional Credit Union Ltd trades as Your Credit Union (YCU).

YCU chairman Gordon Rutherford said that the merger was a "tremendous combination of two companies with much in common" in a statement released late last year.

Commenting on the deal, King & Wood Mallesons partner Rhys Casey said the deal "significantly enhances Auswide Bank’s footprint in south-east Queensland".

Mr Casey added that there was an interesting outlook for future financial institution consolidations.

"YCU members showed great support for the deal and, given the recently announced merger between RACQ and Queensland Teachers’ Mutual Bank, it will be interesting to see if there is further consolidation in the mutual space," he said.

KWM partner Rhys Casey

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