BSX trial to list Community Bank companies

Bendigo Stock Exchange (BSX) will begin piloting a market to enable shareholders of Community Bank companies to trade their shares.

Announcing the initiative today, BSX Chairman Michael McCartney said the pilot would involve a trial listing of a few Community Banks, with the intention to extend it to all companies in Bendigo Bank's Community Bank network.

"There is a definite need to establish a market for Community Bank shareholders," Mr McCartney said.

"While the very nature of Community Bank says that most shares will be tightly held, situations occur in which shareholders need to be able to realise the value of their holding - maybe they are leaving the district, or perhaps they simply need their capital returned to them for other purposes.

"We believe an open market situation will provide buyers and sellers with flexibility and transparency in a regulated market environment."

Mr McCartney said other advantages included the establishment of a half-yearly reporting regime for Community Bank companies, which would instil confidence in the investor base, and the affirmation that a community-based investment represents a "real" investment and "real" value.

Bendigo Bank managing director Rob Hunt said the bank encouraged the BSX initiative, which would be facilitated by AR Strategem Financial Group, of which Mr McCartney is a Partner Director.

BSX is the logical style of stock exchange given the unique characteristics of the Community Bank structure.

"We have always maintained that Community Bank is co-operatively spirited but must also be based on sound commercial principles to ensure its sustainability," Mr Hunt said.

"Bendigo has always intended to facilitate a trading mechanism for shareholders and with 70 local companies now operating, this is the time to test the waters.

"Given that a growing number of local companies are now making sustainable surpluses, there is a need to protect investors by establishing a rigorous, transparent process for evaluating and realising the value of their investment."

Mr Hunt said the bank was keen to ensure there were fair rewards for all stakeholders in locally-owned Community Bank branches of Bendigo Bank.

"The interests of customers are protected by Bendigo Bank, communities are protected by rules which ensure a commitment to community projects, and it is just as important to ensure that the investors who make Community Bank happen for their communities are protected and rewarded as well."

Re-established in 2000, Bendigo Stock Exchange is supported by key alliance partner Bendigo Bank and technology partners Computershare and David Trewern Design. BSX has a particular focus on businesses whose needs have not been met by the traditional market place: small to medium enterprises and rural and regional businesses.

Bendigo Stock Exchange is a one-stop-shop for businesses, for investors and for the community of BSX Advisors and Brokers who support them. Businesses Businesses can present investment opportunities to potential investors via the BSX web site or advertise and promote the services they offer. By listing on the BSX trading markets, businesses can increase their public profile and provide shareholders with a way to trade their shares.

Background to BSX:
Re-established in 2000, Bendigo Stock Exchange is supported by key alliance partner Bendigo Bank and technology partners Computershare and David Trewern Design. BSX has a particular focus on businesses whose needs have not been met by the traditional market place: small and medium enterprises and rural and regional businesses.

The BSX Community
Bendigo Stock Exchange is a one-stop-shop for businesses, for investors and for the community of BSX Advisors and Brokers who support them. Businesses Businesses can present investment opportunities to potential investors via the BSX web site or advertise and promote the services they offer. By listing on the BSX trading markets, businesses can increase their public profile and provide shareholders with a way to trade their shares.

Investors
Investors can use the BSX to find suitable investment opportunities, buy a business, invest in BSX listed stocks or advertise their specific investment requirements to attract particular investment opportunities.

Advisers
Advisers can increase their profile, advertise their services and establish a potential source of referrals via the BSX web site. The benefits of joining the BSX Advisor or Broker network are diverse and rewarding.

BSX Markets
BSX has developed a range of niche trading markets, focussing initially on small and medium enterprises and rural and regional businesses. BSX is also developing niche-trading markets in other sectors.

Private Equity Services
The BSX private equity services are tailored to provide investors with a choice of investment opportunities and emerging businesses with an efficient way to raise capital and gain greater market exposure.

Business can migrate through the private equity services to the niche trading markets as their development requirements change - or they can select whatever service meets their needs at any time.

A range of complementary services have also been developed and are accessible via the BSX website.

The BSX Website
The suite of BSX services and detailed information about BSX and its operations can be accessed through the BSX web site, www.bsx.com.au

Why Choice BSX?

Innovative
One-stop-shop for business, investors and advisors
Rural and regional focus
Small and medium enterprise focus
Ability to migrate through suite of BSX services
Federal, state and local government support
Strong strategic Alliance partners
Leading information technology
150 year heritage
Market integrity
Expertise