The merger became effective yesterday, 18 December 2000. SFE will acquire all Austraclear shares, with 21,037,500 new SFE shares being issued to Austraclear shareholders at the rate of 2.55 SFE shares for each Austraclear share. This will enlarge SFE's equity base by 19.3%, taking its issued capital to 130,157,552 million shares.
The combined SFE-Austraclear will lead to the establishment of a new clearing entity. A new Board for the clearing entity will also be appointed comprising:
- Mr Robert Elstone - Chairman (SFE Managing Director and CEO)
- Mr John Hall - Deputy Chairman (former CEO of Austraclear)
- Mr Rick Holliday-Smith (Chairman of SFE)
- Mr Ron Erdos (National Australia Bank)
- Mr Jonathan Glass (JP Morgan)
- Mr Phil Gray (independent director)
- Mr Rick Martin (ANZ Investment Bank)
- Mr Ian Payne (SFE director)
- Mr Paul Robertson (Macquarie Bank)
- Ms Anne Smart (Credit Suisse First Boston)
- Mr Peter Warne (SFE director)
The Supreme Court decision follows an overwhelming vote in favour of the merger proposal by Austraclear shareholders at a Scheme Meeting on 11 December. The Australian Competition and Consumer Commission gave the proposal the all clear on 22 November.
The merger between SFE and Austraclear will create a centralised clearing and settlement service provider for derivatives, over-the-counter (OTC) debt and commodity products in both Australia and New Zealand. It is consistent with the direction of global clearing markets and the stated objectives of Government and market participants in Australia for the rationalisation of clearing service providers.
A merged SFE-Austraclear will be well placed to enhance operating efficiencies for its clearing and settlement customers and, over time, deliver new product and service initiatives.
