TALKS on a merger between two of the Mornington Peninsula’s most prestigious golf clubs are back on track after stalling last month.
Sorrento Golf Club captain David Paranthoiene, in a letter to members on 20 April, had said discussions were “paused” after Portsea Gold Club revised its position on previously agreed principles and expectations on how the merger would proceed.
“It is the committee’s opinion that these changes may not be palatable for Sorrento members and [we] have … [decided] to seek clarification on these revised aspects of the merger proposal,” Mr Paranthoiene said.
“These changes have the potential to substantially reshape the merger structure and may impose an additional financial liability on Sorrento, something we are simply unable to accept with further explanation.”
One of the issues undergoing due diligence is a post-merger stamp duty liability of $1.4 million – or 5.5 per cent of the estimated value of the new, single entity.
However, as Portsea’s Chris Duffy, who is heading up his club’s side in the merger talks, said on Friday “everything is back on track” after perceived differences between the clubs were ironed out.
“It’s all a matter of negotiation,” he said. “Each side has its different points of view and these are all being taken into consideration in our discussions.
“We still have to get a proposal up between the two groups which would need a 75 per cent agreement by both parties to succeed.” This may take several months.
The potential union was described as a “genuine win-win for all concerned” when it was mooted at the start of the year (“Pairing might be par for the course” The News 27/1/21).
First published in the Southern Peninsula News – 11 May 2021
