By Gerardo R. Partido
Variety News Staff

AUSTRALIAN banking giant ANZ is set to acquire Citizens Security Bank following a “definitive” agreement whereby ANZ will acquire all of the outstanding shares of CSB parent company Citizens Bancorp for approximately $25 million, or $59 per share.
The acquisition is still subject to shareholder and regulatory approval, with the shareholders to be asked to approve the merger at a meeting likely to be held early in the second quarter of this year.
According to CSB, the transaction is anticipated to close later in the quarter.
Kurt Moylan, CSB chairman, said the board was not really looking to sell the bank, which opened in 1991. But when the Melbourne-based ANZ made an offer, Moylan said the board felt compelled to recommend the deal to the bank’s shareholders.
“We were pleased that in selling we have found a partner such as ANZ. We believe that ANZ has committed to the island of Guam, our customers and our employees to continue and improve the work we started. Through this transaction, we are proud to have delivered a significant premium to our shareholders,” Moylan said in a statement.
ANZ is the leading bank in the Pacific employing more than 1,500 people, with 48 branches in 11 countries including American Samoa, the Cook Islands, Fiji, Kiribati, New Caledonia, Papua New Guinea, Samoa, the Solomon Islands, Vanuatu, Tonga and Timor Leste.
Once the acquisition is completed, the CSB board will be made up of the current board members and a few representatives from ANZ. Larry Butterfield will continue in his role as chief executive officer and Moylan will retain the title of chairman of the board.
With the additional resources of ANZ, Moylan said CSB will have the ability to expand the range of its products and services available to its customers because it would be able to leverage ANZ’s experience across the Pacific region and the Australian bank’s willingness to invest in growing the business.
“Acquiring CSB is part of ANZ’s strategy to further develop its leading position in retail and commercial banking in the Pacific. With their strong resources, Citizens Security Bank can take a more active role and make a bigger impact on Guam’s economic development,” Moylan said.
For his part, Butterfield said he is excited that CSB has reached an agreement with ANZ and he is looking forward to CSB’s affiliation with ANZ.
“For our customers, we will be able to expand our products and services, increase our legal lending limit and participate in trade finance. Affiliating with ANZ will be good for our employees, who will participate in their benefit programs and gain access to expanded opportunities,” he said.
ANZ Pacific Managing Director Mike Guerin said the acquisition of CSB would also benefit his bank as this would extend ANZ’s presence in the region and into the North Pacific for the first time, as well as help expand the range of financial services available to customers on Guam.