Equity Trustees has begun attempts to win over shareholders of The Trust Company, outlining its bid offer following last month's announcement of a planned acquisition of the company.
EQT managing director Robin Burns told InvestorDaily that the two companies combined were a much stronger business.
"We are both relatively small companies," he said. "We think the businesses that we operate are complementary and there are opportunities for significantly increased efficiencies in the way we operate and for us to develop complementary business development strategies as well.
"There's a whole range of benefits and improvements that we think can come from this."
In a letter sent late last week, shareholders were informed the merger would improve the value of their shares and dividends.
"Equity Trustees is offering you shares in a company that will be bigger, stronger and more diversified as a result of the successful amalgamation," it said.
"Former Trust Company shareholders will own approximately 59 per cent of the combined entity and will receive 59 per cent of the financial benefits from combining the two companies."
The letter also promised stakeholders that upon accepting their offer, they would be able to participate in synergies estimated to be worth up to $8 million pre-tax per year, retain up to 17 cents per share as 2013 final dividends from The Trust Company, and could qualify for Equity Trustees final 2013 dividend and rollover relief from any applicable capital gains tax if the offer was successful.
Equity Trustees promised to cement The Trust Company's history and values into the corporate identity and to carry out a review of the company's naming and branding strategy.
"We also intend to invite up to two Trust Company directors to join the board of the combined entity, bringing continuity of corporate knowledge," Mr Burns said.
In the coming weeks, shareholders will receive a Bidder's Statement from Equity Trustees containing further details outlining the offer and how they can accept it.
