ANZ makes takeover bid for E*Trade Australia

ASX-listed online share trader E*Trade Australia Ltd is the subject of a $268 million takeover by the ANZ bank.

The bank made an offer today of $4.05 per share for 65.8 percent of the company. ANZ already has a 34.2 percent stake in E*Trade stemming from a strategic alliance formed in 1999.

E*Trade’s committee of directors has unanimously recommend that the company’s shareholders accept the ANZ’s offer which values the share trader at $407 million.

E*Trade Australia chairman, Kerry Roxburgh, said given the offer’s premium of 17 percent to the volume weighted average price of the last month, ANZ’s bid for the balance of the company was a positive development.

“The resources and expertise that ANZ can provide to E*Trade Australia will certainly accelerate the growth of the business,” he said in an ASX statement.

“Based on the on the great success we have already realised from our alliance, the integration of E*Trade Australia and ANZ is a logical next step.”

ANZ group managing director personal, Brian Hartzer, said that the bank would now look to add value to E*Trade’s business by developing its technology platform, building and leveraging scale, and accelerating growth.

A bidder’s statement is expected from the ANZ in March.