Shareholders agree to Bendigo takeover bid for Adelaide

by Richard Kilner

Story link: Shareholders agree to Bendigo takeover bid for Adelaide

A $1.57bn takeover bid by Bendigo Bank has been approved by the shareholders of Adelaide Bank, 98% of whom voted in favour of the offer.

Dr Adele Lloyd, Adelaide’s chairman, informed shareholders ahead of the vote (held today) that the case for a merger was compelling in both financial and strategic terms.

The takeover will result in a lender with assets equalling $50bn, the 7th largest lender in Australia.

Bendigo Bank’s MD, Rob Hunt, described the move as the combination of two successful firms who approached business in different ways. Adelaide focused on growing wholesale activities and Bendigo decided to become a retail bank, Hunt said, adding that the differing approaches were complementary and savings could be made by removing duplication.

Bendigo itself was the subject of a takeover offer earlier in the year. The Bank of Queensland offered $2.5bn, but was surprised to have its bid turned down.

On 16 November Adelaide Bank will go to the Federal Court to request approval for the proposed takeover.

Should the courts approve the move the schemes of arrangement are due to be enacted on 30 November.