TelstraSuper and Equip Super to explore 'merger of equals'
The Boards of TelstraSuper and Equip Super have entered into a non-binding memorandum of understanding to explore a ‘merger of equals’. This means that any merger that proceeds will take the best of both funds to create an even better fund – not a ‘takeover’ on any side.
National Assistant Secretary James Perkins, who is an employee representative director on the Board, said the proposed merger came about following comprehensive review of the fund’s long-term strategy, the industry and assessed a range of superannuation funds as potential merger partners.
“Size and scale are increasingly important – and more personalised service is valued,” said James.
“The Board is determined to ensure our members’ long-term interests will be served and Equip Super, like TelstraSuper, has a core belief in delivering personalised services, guidance and advice to members.”
National Legal Officer Dahlia Khatab, who also serves on the Board as an employee representative director, said that the proposed merger would create a larger entity that maintained the quality of service are used to, whilst offering members an enhanced range of benefits and services.
“The proposed merger with Equip Super will create a fund with more than $60bn in funds under management and 225,000 members,” said Dahlia.
“This presents a real possibility to achieve significant scale benefits and deliver improved retirement services for members, whilst maintaining the service levels both funds currently deliver to members and employers.”
Pending the outcome of a rigorous due diligence exercise, any merger would likely occur in late 2025.
Following any such merger, it is expected that there will be no impact on the day-to-day operations of the fund, or members’ accounts.
A range of information has been made available for fund members and can be accessed at https://www.telstrasuper.com.au/merger
In the meantime, we’ll keep members updated as the due diligence exercise progresses.
