Auswide Bank Shareholders Face Trading Suspension Amid Acquisition
The Supreme Court of New South Wales has approved MyState Bank’s acquisition of Auswide Bank via a scheme of arrangement, setting the stage for a significant consolidation in the Australian banking sector.
- Supreme Court approves MyState Bank’s acquisition of Auswide Bank
- Scheme to become effective on 10 February 2025
- Eligible Auswide shareholders to receive 1.112 MyState shares per Auswide share
- Auswide shares suspended from trading on 10 February 2025
- Implementation of scheme expected on 19 February 2025
Court Approval Marks Key Milestone
Auswide Bank Ltd (ASX: ABA) has announced a pivotal development in its proposed acquisition by MyState Bank Limited, a wholly owned subsidiary of MyState Limited (ASX: MYS). The Supreme Court of New South Wales has formally approved the scheme of arrangement that will see MyState acquire 100% of Auswide’s fully paid ordinary shares. This judicial endorsement clears a major regulatory hurdle, bringing the transaction closer to completion.
The scheme, first outlined in the Scheme Booklet released in October 2024, is now set to become legally effective once the Court orders are lodged with the Australian Securities and Investments Commission (ASIC) on 10 February 2025. This date will also mark the suspension of Auswide shares from trading on the ASX, signaling the transition phase for shareholders and the market.
Shareholder Consideration and Timetable
Under the terms of the scheme, eligible Auswide shareholders will receive 1.112 new MyState shares for each Auswide share held as of the record date on 12 February 2025. This share exchange ratio reflects the agreed valuation and is designed to integrate Auswide’s shareholder base into MyState’s broader platform.
For shareholders outside Australia who are deemed ineligible to receive shares directly, a sale facility will provide a cash alternative, with proceeds expected to be distributed by 19 March 2025. This ensures compliance with regulatory and jurisdictional requirements while maintaining equitable treatment of all shareholders.
The implementation date is scheduled for 19 February 2025, when the scheme consideration will be formally paid and MyState shares will commence trading on a normal settlement basis. This timeline provides a clear roadmap for investors and market participants to prepare for the transition.
Strategic Implications for the Banking Sector
This acquisition represents a significant consolidation within Australia’s regional banking landscape. Auswide Bank, which has operated since 1966 and listed on the ASX since 2015, brings a strong Queensland presence and a diverse customer base. MyState Bank’s move to absorb Auswide signals its ambition to expand its footprint and scale in a competitive market.
Market watchers will be keen to observe how the integration unfolds operationally and culturally, as well as the impact on competitive dynamics among mid-tier Australian banks. The combined entity is expected to leverage complementary strengths, including Auswide’s omni-channel distribution and MyState’s capital base.
Executives from both banks have emphasized the strategic rationale and potential benefits for shareholders, customers, and employees. However, the coming months will be critical to ensure a smooth transition and to realise anticipated synergies.
Bottom Line?
With court approval secured, the focus now shifts to execution and market reaction as the banking sector braces for a new player.
Questions in the middle?
- How will MyState Bank integrate Auswide’s operations and customer base post-acquisition?
- What are the expected cost synergies and revenue opportunities from the merger?
- How will the market respond to the suspension and subsequent listing of new MyState shares?