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Mackay drops profit, sweats on Capricornia merger

Mackay drops profit, sweats on Capricornia merger

(22 August 2005 – Australia) Queensland based building society Mackay Permanent has posted a 14 percent drop in net profit despite selling its share of ATM provider Cashcard for $400,000. Mackay announced a net profit of $1.78 million for 2005 compared with $2.03 million last year.

Mackay is trying to merge with Rockhampton based Capricornia Credit Union and said it had "expended significant financial and human resources" in its attempt to set up the merger.

Despite receiving the all clear from the Australian Securities and Investments Commission to pursue the merger, the board of Capricornia rejected the bid out of hand without even notifying its members.

Capricornia also appealed ASIC’s decision and put the case before the Administrative Appeals Tribunal.

Mackay chief executive Bob Neely said a merger would be beneficial to both parties and would include a cash payment to Capricornia’s members.

However, he said he respected Capricornia’s right to determine the future of the company themselves.
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