Lane Neave advises on merger of New Zealand’s largest Credit Union
Lane Neave advised three of four entities on a merger which has created New Zealand’s largest credit union.
The transaction brings together Credit Union Baywide, Credit Union South, Credit Union Central and Aotearoa Credit Union following member approval of the transaction under the Friendly Societies and Credit Unions Act 1982 (Act).
The merged entity now has more than 64,000 members, total assets of approximately $550 million and is the eighth largest non-bank deposit taker in New Zealand.
The merger provides a platform for significant potential growth, access to better resources, offer scale efficiencies and a competitive banking alternative for its New Zealand member owners.
The Lane Neave team was led by Partner Gerard Dale, together with Partners Claire Evans, Joelle Grace and Evelyn Jones.
Commenting on the deal, Gerard Dale said, “We’re delighted to support longstanding Credit Union clients in relation to the merger and the combined entity, which is now New Zealand’s largest.”
“The deal involved complex issues related to the nature of the Friendly Societies and Credit Unions Act 1982, Non Bank Deposit Takers Act 2013 and all applicable consumer credit legislation.”
“Our team’s involvement also extended to the novation of Credit Union South’s securitisation programme to the merged entity and the transfer of all existing registered securities to the merged entity.”
“We are pleased to help all entities reach a great outcome for their members.”