Mergers and acquisitions
Bank of Queensland is focused on its policy of strong organic growth, especially outside Queensland, and is continually looking for strategic mergers and acquisitions judged to be complementary to the Bank’s business.
CIT Group (Australia) Limited and CIT Group (New Zealand) Limited
In July 2010, the Bank completed the purchase of CIT Group (Australia) Limited and CIT Group (New Zealand) Limited (collectively "CIT Australia and New Zealand"), paying a combined total for purchase consideraion and refinance of debt of $475 million.
This vendor finance business works with manufacturers, dealers and resellers to provide leasing and financing packages to consumers, businesses, government agencies and education providers.
The CIT Australia and New Zealand business has been combined with BOQ's existing equipment and debtor finance businesses to form the business line, BOQ Finance.
St Andrew's Insurance (Australia) Pty Ltd and St Andrew's Life Insurance Pty Ltd
In March 2010, BOQ signed an agreement with Commonwealth Bank to purchase St Andrew's Insurance (Australia) Pty Ltd and St Andrew's Life Insurance Pty Ltd (collectively "St Andrew's") for $45 million, subject to post completion adjustments.
St Andrew's is a leading Australian manufacturer of consumer credit insurance products with a solid history of partnering with financial institutions to deliver insurance solutions.
St Andrew's is being operated as an independent entity, in much the same way as it was profitably operating prior to the Bank's purchase.
Home Building Society
On Friday, 30 November 2007, Bank of Queensland Limited (BOQ) welcomed a decision by shareholders in Home Building Society Ltd (Home) to overwhelmingly support the $600 million merger between the two financial institutions, which has been implemented by way of a Scheme of Arrangement.
At the Scheme meeting held in Perth, the merger was supported by 94.39% of Home shareholders who voted on the Scheme of Arrangement.
The vote in support of the merger was substantially above the required 75% approval threshold.
Final Court approval for the Scheme of Arrangement was given at a Federal Court hearing held on Tuesday, December 4, 2007.
Home Chairman Tony Howarth joined the Board of BOQ following implementation of the merger.
Under the Scheme, Home Shareholders received 0.844 new BOQ shares plus $2.80 cash for each Home share they owned. This represents a total consideration of $17.99 per Home Share based on BOQ’s closing share price of $18.00 on Thursday, 29 November 2007 and a substantial premium of 28% based on Home’s closing share price of $14.11 on the last trading day prior to announcement of the Merger.
Full integration of Home Building Society into Bank of Queensland is expected to be completed by the end of 2008.
The Australian Tax Office (ATO) has published a Class Ruling to assist former Home Shareholders in dealing with the tax implications of the merger.
Pioneer Permanent Building Society
BOQ purchased Pioneer Permanent Building Society during the 2006 - 2007 financial year with full integration completed in November 2007.
Mackay Permanent Building Society
In August 2007, Bank of Queensland announced a recommended proposal for all the shares in Mackay Permanent Building Society Limited which valued Mackay Permanent at $53.2 million.
On 14 November 2007, Wide Bay Australia Limited (WBB) increased the scrip consideration it had offered under a conditional takeover bid. On Friday November 16, 2007, the Mackay Permanent Board announced that it had withdrawn its recommendation that Mackay Permanent shareholders vote in favour of Bank of Queensland's merger proposal.
Bank of Queensland announced on 19 November 2007 that it does not intend to increase its offer for Mackay Permanent.