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AGEST Merger Media release 14 Dec 2011

Last Updated : 14 Dec 2011

AGEST selects AustralianSuper as preferred merger partner

AGEST Super (AGEST) has selected AustralianSuper as a preferred merger partner and the fund most likely to deliver ongoing benefits to its members.

AGEST CEO Ms Cath Bowtell said that AGEST’s decision to seek a merger partner arose from the Board’s view that members' interests are best served by being in a large fund that is growing strongly. While AGEST is a growing fund, the Board’s assessment is that this growth is likely to stall in the medium term without significantly increased expenditure.

‘’Australian Super was selected as the best fit for AGEST because of its consistent investment performance, commitment to low fees, wide variety of investment options, extensive range of ancillary services and strong national presence,” said Ms Bowtell. “AustralianSuper’s extensive merger experience was also a factor.”

“The selection of AustralianSuper is an important milestone. A final decision to merge, however, depends on the AGEST Board being satisfied that it’s in the best interests of our members, after all the costs and benefits are analysed” said Ms Bowtell.

The decision followed a tender process which commenced in September 2011 where AGEST sought merger proposals from comparable peer funds. PWC provided expert advice and Pitcher Partners provided probity oversight to AGEST during the tender process.

AGEST and AustralianSuper will now work together to agree on an integration plan and undertake due diligence on each other. A full cost benefit analysis will also be part of the next stage.

AGEST has made a submission to the government requesting CGT rollover relief and will continue to seek to preserve its deferred tax asset in the proposed merger.

Members will be kept fully informed via AGEST News, the AGEST website and the Member Contact Centre.

About AGEST

AGEST manages around $4.3bn on behalf of approximately 130,000 members predominantly current and former Commonwealth and Territory public sector employees.

About AustralianSuper

AustralianSuper is Australia’s largest industry super fund with around 1.8 million members and administers approximately $42 billion of member funds.

Further information

AGEST

Contact: Sue Voglis
Manager, Marketing & Communications

03 9674 9313
0408 309 247