Following its Announcement on 21 February 2013 of an Offer to acquire The Trust Company Limited, Equity Trustees Limited (ASX: EQT) has lodged its Bidder’s Statement with ASIC and has also sent it to The Trust Company (ASX: TRU) and the ASX.
Mr Tony Killen, Chairman of EQT said, “Equity Trustees’ Offer for The Trust Company is a compelling opportunity to improve value and returns for both companies’ shareholders. This has been demonstrated by the recent strong increases in the share prices of both Equity Trustees and The Trust Company.
Unusually for an unsolicited takeover bid, both companies have significantly outperformed the market since the Offer was announced almost one month ago.”
“Significantly, following the Announcement, both share prices have settled at around the offer ratio. That being the case, it seems to me the market tacitly endorses the Offer we are making. The responses we have received from various parties with an interest in the Offer also confirms this.”
The Bidder’s Statement provides relevant information about the Offer, including:
Information from EQT Bidder’s Statement
Mr Killen said, “We estimate that together Equity Trustees and The Trust Company can generate up to $8 million in cost synergies per annum, with potential for further performance enhancements. This would lead to improved earnings and provide the opportunity for higher dividends. Collectively, this would allow all shareholders to gain through an investment in a bigger and better company with greater investor appeal.”
Next steps
All shareholders are encouraged to read the Bidder’s Statement that outlines the Offer in detail and is available at www.asx.com.au.
The despatch of Equity Trustees’ Bidder’s Statement to The Trust Company shareholders is currently scheduled after Easter, in early April. The Offer will remain open for a minimum of one month, during which The Trust Company will provide its Target’s Statement providing an assessment and recommendation about the Offer.
