Merger Questions & Answers

About the merger

What is MyState Limited?

MyState Limited is the name of the new company formed as a result of the merger between Tasmanian Perpetual Trustees Limited and MyState Financial Credit Union. MyState Limited is a non-operating holding company and by market capitalisation is in the top 300 Industrial Companies listed on the Australian Securities Exchange. As wholly owned subsidiaries of MyState Limited, the branded businesses of Tasmanian Perpetual Trustees and MyState Financial will continue to deliver services in areas where each organisation currently operates.

Why did the two organisations want to merge?

Tasmanian Perpetual Trustees and MyState Financial were each strong businesses which we believe will be even stronger together. The two companies also have very similar cultures and commitments to personal service and by combining the right mix of products and capabilities we will be able to provide an improved range of products and services for all customers.

Where will the company’s head office be located?

The new combined group – MyState Limited is registered in Launceston. The operating businesses – MyState Financial and Tasmanian Perpetual Trustees will retain their existing headquarters in Hobart and Launceston respectively.

Who will be on the Board of MyState Limited?

The Board will initially comprise five current Directors of Tasmanian Perpetual Trustees and five current MyState Financial Directors, bringing the necessary scope of background and expertise that will be required in the combined group. The board members are Dr Michael Vertigan AC (Chairman), Peter Armstrong, Nicholas d’Antoine, Robert Gordon, Tim Gourlay, Miles Hampton, Colin Hollingsworth, Ian Mansbridge, Sarah Merridew, Anthony Reidy and the Managing Director (to be appointed).

Why didn’t Tasmanian Perpetual Trustees’ clients get shares like MyState Financial members?

Tasmanian Perpetual Trustees was a listed public company and owned by its shareholders. MyState Financial was not a listed company and was owned by its members who were also customers. The demutualisation of MyState Financial required the value of MyState Financial to be apportioned to each member in the form of shares in the new company.

Tasmanian Perpetual Trustees products and services

What will happen with Tasmanian Perpetual Trustees’ products and services?

Tasmanian Perpetual Trustees will continue to provide the same products and services clients have enjoyed for generations. In particular, the Company’s role as executors and trustees will continue and this area will remain a vital and core part of the new business. Services will be maintained in all areas where Tasmanian Perpetual Trustees currently operate.

Are there going to be any changes to Tasmanian Perpetual Trustees’ Managed Investment Funds?

No, Tasmanian Perpetual Trustees’ products are regulated by the Australian Securities and Investments Commission and must follow strict investment policies. Tasmanian Perpetual Trustees’ Managed Investment Funds will retain their strict governance and prudential standards as they have always done. For further information on our investment policies for each of our managed funds, please refer to the current Product Disclosure Statement (PDS).

Will Tasmanian Perpetual Trustees’ Managed Investment Funds now be covered by the Federal Government Guarantee?

No, Tasmanian Perpetual Trustees, like all Trustee companies, managed investments and superannuation funds is not covered by the Government Guarantee; even though MyState Financial will continue to be covered by the Government Guarantee. However, Tasmanian Perpetual Trustees’ Managed Investment Funds will continue to be managed under strict investment policies and prudential governance standards.

Will Tasmanian Perpetual Trustees’ lending policies change?

The merger will not affect our lending policies. Tasmanian Perpetual Trustees will continue to lend funds to rural and commercial clients as part of its responsibilities in managing the assets of its three mortgage or income funds. Tasmanian Perpetual Trustees’ lending policies are determined by the Board of Tasmanian Perpetual Trustees Limited and a summary of these policies is contained in the Cash & Income Funds PDS and the Tasmanian Select Mortgage Fund PDS.

Will Tasmanian Perpetual Trustees’ fees increase?

Fees and charges for many of the services of a Trustee company are regulated or capped by legislation. In other areas we review our fees on a regular basis to ensure they reflect the costs of doing business and the needs of the market. We do not envisage any fee increases due to the merger with MyState Financial.

Tasmanian Perpetual Trustees and Bendigo Bank

What is happening to Tasmanian Perpetual Trustees’ joint branches with Bendigo Bank?

The sale of Tasmanian Banking Services (TBS), the joint venture between Tasmanian Perpetual Trustees and Bendigo Bank, was completed on the 10th August 2009 and Bendigo and Adelaide Bank Limited have agreed to incorporate the TBS branches into its national network.

For all Tasmanian Perpetual Trustees’ branches operated within jointly shared facilities with Bendigo Bank, Tasmanian Perpetual Trustees will relocate these local operations within the next few months. Alternative arrangements for the branches impacted are currently being explored. As soon as alternative locations are found, clients will be extensively informed of the new arrangements.

Staffing and service

Are there plans to merge any parts of the operations of Tasmanian Perpetual Trustees and MyState Financial?

A Merger Integration Committee has been established to ensure a successful implementation of the merger. In the early days, this Committee will oversee the integration of certain back-office functions, which may be transferred to the new non-operating holding company under a shared services business model.

Will my contact person at Tasmanian Perpetual Trustees change?

As a result of this merger there will be very few staff changes and mainly in areas without direct client contact.

Will Tasmanian Perpetual Trustees’ service standard be retained?

Yes, Tasmanian Perpetual Trustees will maintain the type of personal and flexible service which you value and our unique “Tasmanian” and “non-bank” way of doing business will not be diminished.

Further Questions?

Please contact your local branch manager or account manager if you have any unanswered questions about the merger between Tasmanian Perpetual Trustees and MyState Financial.

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