Final court orders for banking proposal

Final court orders have been granted for a $2.2 billion merger proposal of Pyne Gould Corp finance subsidiary Marac with CBS Canterbury and Southern Cross Building Society, to create a listed banking and financial services group.

CBS today said the granting of the orders was another big step forward for the proposal.

The court orders helped pave the way for the merger to be implemented in early January and shares in the merged group holding company, Building Society Holdings, to be issued to shareholders of CBS Canterbury (13.04 per cent) and Southern Cross Building Society (14.75 per cent) on January 7.

As of the close of business today, CBS Canterbury shares would delist from the NZAX and trading in Southern Cross shares would cease, CBS said.

The remaining 72.21 percent balance of the holding in Building Society Holdings was held by Pyne Gould.

Listing of Building Society Holdings on the NZX was expected on January 31.

Pyne Gould intended to distribute most of its Building Society Holdings stake to its shareholders, and place the rest.

The distribution was expected to take place in the first half of 2011 and would remove Pyne Gould as a dominant shareholder and broaden Building Society Holdings' shareholder base.

- NZPA