Building societies plan merger

Press, 18 December 1976, Page 6

Building societies plan merger

PA Dunedin Four New Zealand building societies — the Otago, the Christchurch Mutual, the Gisborne Permanent, and the New Zealand Permanent — will combine operations if they get the approval of their members.

In a letter to members, the president of the Otago building society (Mr B. J. Naylor) said that each of the societies was well established and in a very strong financial position. “The proposed merger, which will create a society with assets totalling more

than S3OM, will produce significant benefits, including more efficient and comprehensive service for the collation of savings and investments, and the provision of home mortgage finance,” he said.

“In addition, the broader base and resulting strength of such a society will greatly' add to the flexibility of the services available to members, depositors and mortgagors.” The combined society, which would come into being on April 1, would adopt a name more in keeping with its national image, said Mr

Naylor. Its head office would be in Dunedin.

“Existing societies will become branches which will continue to operate, under the guidance of local boards, by attracting and lending funds on the same regional basis as at present,” he said. With total assets of $15,514,305, the Otago Building Society is by far the largest of the group.

Christchurch Mutual has total assets of $8,440,061; Gisborne Permanent, $4,627,008; and New Zealand Permanent $1,432.644.