MyState eager to acquire Auswide Bank

Martin Barrett, CEO of Auswide Bank. Pic Jono Searle.

Tasmanian lender MyState is understood to have entered into ­takeover talks with Queensland’s Auswide Bank in the middle of last year.

However, the offer by MyState was rejected after one of Auswide’s major shareholders took exception to the terms of the proposed transaction, sources said.

Apparently, Ron Hancock, the former founding managing director of Auswide — previously known as Wide Bay Australia — objected to the deal.

He is the company’s largest shareholder with a 6 per cent ­interest in the business.

It is thought Mr Hancock wanted the company’s headquarters to remain in Bundaberg, Queensland, and he believed it should in fact be Auswide buying MyState.

Auswide shares have fallen from about $12 five years ago to about $5.13, while MyState shares have increased to $4.09 from about $3.50 in the same ­period.

It is understood MyState’s board remains eager to revive talks with Auswide about a deal and wants to put forward a significant premium for an acquisition.

Based in Tasmania, the $400m diversified lender is run by Melos Sulicich, who has ambitions to ­expand the company’s earnings profile.