Catholic Building Society members approve the merger with Chelsea Building Society

15 October 2008

Catholic Building Society held a Special General Meeting (SGM) where its shareholding and borrowing members showed their approval for the proposed merger with Chelsea Building Society. The SGM was held on 9 October 2008 at Westminster Cathedral Hall, Ambrosden Avenue, Westminster, London SW1P 1QW.

Members overwhelmingly approved the merger with an overall percentage in favour of 94.1% which represents 94.1% of eligible shareholding members and 94.8% of eligible borrowing members who voted.

Subject to confirmation by the Financial Services Authority (FSA), the effective date for the merger is expected to be 31 December 2008.

'I am delighted that our members showed their support for the board's recommendation to merge with Chelsea and by such a majority' said Clare Whittaker, Catholic's Chairman. 'This proves that our members understand that being part of Chelsea will offer financial strength, cost efficiency and most importantly competitive benefits to members whilst retaining Catholic's ethos and heritage. Our members will now greatly benefit from a larger branch network as well as a wider range of products and services.'

Richard Hornbrook, Chelsea Director and Chief Executive added, 'I am very pleased to welcome Catholic members into Chelsea's family and am confident that the combined society will be able to compete with the larger mortgage lenders and deposit takers whilst continuing to treat people as individuals and offering the highest levels of personal service.'

Voting results

Notes

1. Chelsea is the UK's fifth largest building society with assets over £14 bn
   
   
2. Catholic is the UK's 57^th largest building society with assets of over £51 m
   
   
3. Voting turnout was 1,857 votes, the equivalent of approximately 60% of the eligible voting membership
   
   
4. The results of the polls for both merger resulutions were as follows:
   
   Shareholding members' resolution
   Votes cast in favour: 1,747
   Votes cast against: 110
   
   The votes cast in favour represented 94.1% of the the total valid votes cast on the Shareholding members' resolution.
   
   Borrowing members' resolution
   Votes cast in favour: 110
   Votes cast against: 6
   
   The votes cast in favour represented 94.8% of the total valid votes cast on the Borrowing members' resolution.
   
   
5. Qualifying Shareholding menbers of Catholic will receive a one-off merger bonus payment of 2.2% of the lower of:
   (a) the aggregate balances invested in share accounts for which the member is the sole or first named account holder in the records of the Catholic as at the close of business on 31 May 2008; and (b) the aggregate balances invested in share accounts for which the member is the sole or first named account holder in the records of Catholic as at the close of business on the day before the Effective Date. The Effective Date is expected to be 31 December 2008. This will be subject to a minimum pre-tax bonus of £100 and a maximum pre-tax bonus of £500.
   
   
6. Qualifying borrowing members of Catholic will receive a one-off pre-tax merger bonus payment of £100.
   
   

Catholic members requiring further information about the merger should call 0845 607 6702 which will be open 9am to 5pm Monday to Friday (other than bank holidays).

For further information please contact:
Jeremy Hicks - Divisional Director Communications on 01242 271114, mobile 07831 149460

Vicki O'Connell - Communications Manager on 01242 271466, 07774 169535