One fifth of StateWest members opt for cash over Home shares

More than 20 per cent of StateWest Credit Society Ltd members have opted to cash in on its demutualisation and merger with Home Building Society Ltd, taking money instead of shares after a vote approved the deal.

Around 13,500 members have chosen to take advantage of a share sale arrangement through Euroz Securities Ltd rather than accept Home shares in the merger, which was approved at a scheme meeting yesterday evening by 95.7 per cent of voting members.

StateWest has more than 60,000 members.

Under the merger deal StateWest members are to get approximately 237 Home shares worth approximately $3,031, based on the 45 day volume weighted average price of Home's trading price. There was also a special dividend of approximately $215.

The full announcement is below:

Home Building Society Limited (ASX: HME) and StateWest Credit Society Limited are pleased to announce that members of StateWest have voted overwhelmingly in favour of the merger of the two organisations by way of a scheme of arrangement.
At the Scheme Meeting held in Perth yesterday evening, of those StateWest Members that voted 95.70% voted in favour of the merger, substantially above the required 75% approval threshold.
23,246 StateWest Members participated in the vote, with 22,292 voting in favour of the proposal and 1,002 voting against.
StateWest members also voted overwhelmingly in favour of a merger related constitution amendment resolution at an Extraordinary General Meeting held shortly after the Scheme Meeting.
Home and StateWest will now seek final Court approval for the merger in the Federal Court in Perth on 28 June 2006.
StateWest Chairman Trevor Halliday said the vote at both the Scheme Meeting and the Extraordinary General Meeting had shown the vast majority of Members were supportive of the Home merger proposal.
"It is pleasing there is such consensus on the future of StateWest - and that future is an exciting one working with Home to build a great new financial institution for West Australians," he said.
Home Chairman Tony Howarth said he was pleased the merger process was finally nearing completion nine months after the initial announcement of the proposal.
"We strongly believe this union will create a major new West Australian financial institution that can provide a genuine alternative to big banks," he said.
Under the merger proposal, Home will acquire the shares in StateWest through the issue of approximately 15.17 million shares to StateWest Members.
In addition, StateWest Members will receive a special dividend from StateWest. At current market levels, each StateWest Member will receive the equivalent of $3,246 in shares and dividend (based on a 45 day volume weighted average price of Home shares of $12.79 at the close of trade on 1 May 2006).
Share Sale Facility
Over 13,500 StateWest Members have elected to participate in a Share Sale Facility established by Home to provide a means through which StateWest Members could sell the Home shares they will receive on completion of the merger.
Under the Share Sale Facility, StateWest Members will have their shares sold through stockbroker, Euroz Securities Limited.
Participating StateWest Members are expected to receive the sale proceeds under the Share Sale Facility in late July following implementation of the scheme.
Timetable
28 June 2006
Second Court Hearing for Court approval of the Scheme pursuant to section 411(6) of the Corporations Act
3 July 2006*
Effective Date of the Scheme - the date when the Scheme becomes binding
10 July 2006*
Implementation Date of Scheme, including the issue and allotment of the Scheme Consideration and the payment of the Special Dividend
* Dates subject to change pending Federal Court approval