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.

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Offer highlights

• 33 EQT shares to be offered for every 100 TRU shares [1]
• Values TRU at $5.28 per share based on the EQT share price before the offer was announced
• 11.2% premium to TRU share price before the offer was announced
• 13.3% premium to average TRU and EQT share prices over the past 1 month
• Estimated to generate up to $8m p.a. of synergies by end of 2014
• TRU shareholders will own approximately 59% of the Combined Group and participate proportionately in gains from consolidating the two organisations
• TRU shareholders retain up to 17 cents dividends per share under the Offer
• TRU shareholders may qualify for EQT’s FY13 final dividend
• Share-based offer may provide rollover relief from CGT
• Fulfils a long-standing corporate opportunity for consolidation and efficiency gains.

Mr Tony Killen, Chairman of EQT said, “Combining Equity Trustees and Trust Company has been identified as the best available corporate transaction for both companies. We strongly support this view. Discussions between the two companies have been held formally and informally on a number of occasions without success. The Offer will provide the opportunity for Trust Company shareholders to decide the matter.”

Mr Killen added, “This is an exceptional opportunity for shareholders in each company. The benefits for each company’s investors, many of whom are long-term and very loyal, are highly attractive. Both groups of shareholders will access the upsides that can be realised by the combined group. Clients and employees will also benefit from being associated with a larger, more diversified organisation with deeper resources, broader scope and a wider range of high-quality services.”

[1] The Offer will express the Offer consideration as 0.33 EQT shares for every TRU share.

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The 2013 Miles Franklin longlist will be announced in mid-March, followed by the shortlist announcement at a public event on 30 April at the State Library of New South Wales. The winner will be announced at the National Library of Australia in Canberra on 19 June. 

There have been 73 entries received for the 2013 Award, representing a 30% increase from 2012. 

The Trust Company’s Head of Philanthropy and Community, Simon Lewis, announced the Trustee’s focus for the 2013 award is to expand and engage the audience behind the award, by encouraging as many Australians as possible to support and recognise the importance of Australian literature.

“Twitter is a great vehicle to reach a new audience for the Miles Franklin Literary Award and further promote Australian literature, a wish expressed by Miles Franklin in her will which established the award,” Mr Lewis said. “As Trustee of the Award, we are actively working to maintain its heritage as Australia’s most prestigious literary award and enhance the legacy Miles Franklin entrusted with us.”

In continuing this theme, The Trust Company also today announced the Copyright Agency’s Cultural Fund has agreed to provide financial support for a project with the English Teacher’s Association to develop teaching modules to promote the teaching of Australian literature in schools. 

“The Miles Franklin Literary Award is an important event in celebrating Australian Literature and this initiative broadens this to the education system, and complements the work the Copyright Agency is already doing in funding the Reading Australia Project,” Mr Lewis said. 

The Trust Company recently announced the prize money for the Miles Franklin Literary Award would rise to $60,000 this year (up from $50,000 in 2012) and continues to campaign the Government to make the prize, and other iconic awards, tax free.

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