St.George and Westpac agree key merger terms

13/05/2008

St.George Bank Limited (St.George) and Westpac Banking Corporation (Westpac)
today announced a proposed merger of the two companies to create Australia’s
leading financial services company.
Under the proposed merger, St.George’s operating model would be preserved. This
approach, combined with attractive merger terms, is expected to maximise value for
customers, shareholders and employees over both the short and longer term.

 Would create Australia’s leading financial services company for customers,
shareholders and employees

  • All Westpac and St.George brands, including BankSA, Asgard and
    branch/ATM networks would be retained
  • All share merger to be implemented by way of a St.George scheme of
    arrangement
  • St.George shareholders to receive a premium of 28.5% based on the closing
    prices of shares in both companies on 9 May 2008(1)(2) and 24.1% based on
    the 1 month VWAP of shares in both companies(3)
  • St.George Board to recommend the merger to shareholders, subject to an
    independent expert confirming the transaction is in the best interests of
    St.George shareholders and no superior proposal being made
  • AA credit-rated financial institution, with strong capital and broad based
    funding
  • Generates value by creating a significantly stronger platform for growth in
    Australia and New Zealand
  • Read the media release about Westpac and St George merger discussions

BT Financial Group is part of the Westpac Group.