EISS Super merger talks with TWUSUPER collapse
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Merger talks betwixt transport manufacture ace money TWUSUPER and troubled EISS Super person collapsed, contempt six months of owed diligence pursuing an expenses situation and a raft of committee resignations astatine the vigor fund.
The Age and Sydney Morning Herald reported successful April the 2 manufacture ace funds were successful high-level discussions to rotation their operations into a associated $11 cardinal fund. Sources astatine the clip raised fears that advancement could beryllium hampered by national conflicts.
TWUSUPER said connected Thursday it called disconnected the merger due to the fact that it was not successful the champion interests of its members.
“TWUSUPER’s information successful entering merger discussions with EISS was the imaginable payment members of some funds would execute from greater scale,” said a spokesperson for the fund, which is named aft the Transport Workers Union. “We besides felt EISS members would payment from TWUSUPER’s beardown concern performance.”
“Following extended owed diligence TWUSUPER volition not proceed with a merger with EISS astatine this time. Any merger indispensable beryllium successful members’ champion interest. TWUSUPER is present pursuing different maturation options.”
However, EISS besides said its committee had decided to reappraisal the merger.
“In mid-September, the EISS Board made a determination to spot the merger with TWUSUPER connected clasp portion it reviewed EISS’ broader merger strategy,” a spokesperson said.
“EISS remains committed to pursuing a merger that is successful the champion fiscal interests of our members and are actively exploring a scope of merger opportunities.”
Both funds are comparatively tiny superannuation funds managing astir $5.5 cardinal each. The Australian Prudential Regulation Authority has ramped up pressure connected smaller funds, particularly underperformers, to merge. EISS was named 1 of the country’s 13 worst performing ace funds by APRA past month.
The collapsed negotiations travel the abrupt resignation of EISS’s main executive, seat and 3 directors past period amid allegations the money excessively spent members’ wealth connected unit parties, overseas junkets and questionable sponsorship deals.
More to come.
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