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TelstraSuper and Equip Super proceed with $60bn merger
The deal will create a combined fund with more than $60 billion in funds under management and over 225,000 members.
TelstraSuper and Equip Super have signed a binding heads of agreement to proceed with a “merger of equals” between the two funds.
On Tuesday, the two funds also confirmed that “Equip Super” will be the go-forward brand, with the TelstraSuper brand to be retired in due course.
The announcement follows the signing of a non-binding memorandum of understanding in September, in addition to a due diligence process confirming the merger is expected to be in the best financial interests of members of each fund.
According to the duo, the deal would achieve significant scale benefits and deliver improved retirement outcomes for members.
Moreover, the merged entity’s board will comprise an equal number of legacy TelstraSuper and Equip Super directors. Current Equip Super chair Michael Cameron will be independent chair of the new fund’s board, while TelstraSuper chair Anne-Marie O’Loghlin will be independent deputy chair.
“It is a privilege to be named the inaugural chair, as Equip Super and TelstraSuper come together to form a new fund that will deliver scale benefits to our members,” Cameron said on Tuesday.
“With a best of breed approach, we will maintain the personalised service both funds are known for, and bring to market leading products, services and capability.”
O’Loghlin said: “The agreement to merge follows a rigorous assessment by the trustee board of a variety of merger options that were available to TelstraSuper.
“This coming together signifies a new chapter of growth, strength, and enhanced services for both funds’ members. With shared values, strong defined benefit experience, and a passion for financial advice, we look forward to building a united Fund in the best interests of members.”
Meanwhile, current TelstraSuper CEO Chris Davies will be the inaugural CEO of the new entity and current Equip Super CEO Scott Cameron will be the deputy CEO.
The funds also said that once the operational integration is complete to the satisfaction of the merged entity’s board, Cameron will be set to succeed Davies as CEO.
In the meantime, the funds will continue to operate independently until the merger is executed via a successor fund transfer, which is expected to occur later next year.
“It is anticipated that operational integration will be substantially complete around the end of 2026. The two funds will keep members, employers and other stakeholders informed as the merger progresses,” the duo said.
AUTHOR
Jessica Penny
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