ANZ increases stake in E*Trade Australia

ANZ increases stake in E*Trade Australia

ANZ has increased its shareholding in E*Trade Australia from 28.33 per cent to 35 per cent, following the issue of 9,550,260 milestone shares by the online brokerage.

The issue was made in accordance with an alliance between the two comapnies and approved by shareholders on 25 August 1999. ANZ received an initial placement of shares representing ten per cent of the company’s capital in return for marketing the ANZ/E*Trade co-branded service to its customers. The ANZ has the right to be issued with up to 35 per cent of shares in E*Trade Australia.

In the final milestone period of six months to 29 September 2002, a bonus shareholding of five per cent could be earned if ANZ/E*Trade customers comprise two-thirds of total trades in that period.

Under the alliance, ANZ is responsible for all marketing costs incurred to encourage its customers to open accounts and trade through E*Trade. ANZ markets its services directly to online banking customers, staff, shareholders and all other general account and cardholders.

Michael Deleray, group chief executive officer, states: "We do not anticipate another share issue to the ANZ for the final milestone period ending 29 September 2002 in respect of the five per cent bonus. March 2002 should bring an end to the process of significant non-cash share issues that negatively impact the profit and loss account but do not impact our cash position."

Customers introduced by ANZ now exceed 35,000 accounts representing more than 37 per cent of the total customer base.

Comments: (0)