A non-bank has put forward a proposal for the acquisition of a community-based credit union in regional Queensland.
Firstmac Holdings Limited has confirmed the plans, which would see them acquire Maleny Credit Union (MCU), based out in the Sunshine Coast’s hinterland.
The proposal needs the support of MCU members before it can proceed, with the agreement to be put to a vote of members later this year.
Firstmac Holdings will also require FSSA approval from the Federal Treasurer.
As part of the agreement being put forward, Firstmac would need to make a long-term commitment to the community of Maleny, making a ten year branch guarantee.
According to an announcement by MCU, other details include Firstmac paying $7million for the business.
Four million dollars of this would be paid back evenly to MCU members, of which there are around 3000.
Another $2 million would be paid to the MCU Charitable Trust, to continue funding and supporting local community groups. Further to this, at least $30,000 will be donated each year depending on the branch’s profitability.
The final $1m will be used to pay back capital to MCU member investment share owners.
In MCU’s announcement, it said the opportunity with Firstmac could “achieve what the board believes is an excellent outcome and a superior offer for Members and the community”.
A statement from Firstmac said, “Firstmac has a strong history of growing a competitive business in the finance space, and is excited to have this opportunity to become part of and provide a beneficial service to the entire Maleny community.
“Regular updates will be provided on the progress of the proposed agreement in coming months.”
Firstmac also assured that cheque, savings and loan accounts would continue. There are also plans for improved online services, new products, and an increase in lending caps together with more competitive pricing/lower fees.
Deposited funds will continue to be covered by the government’s Deposit Guarantee.