The New Zealand (NZ) government has agreed to acquire 100% of Kiwibank’s owner Kiwi Group Holdings (KGH) for $2.1 billion (US$1.3 billion).
KGH operates under three state-owned companies: NZ Post, Accident Compensation Corporation (ACC) and NZ Superfund.
Treasurer Grant Robertson said Crown had essentially full ownership of Kiwibank through three entities, but NZ Post and ACC were looking to exit as shareholders due to divergent long-term investment plans. rice field.
NZ Super Fund Chief Executive Matt Whineray has revealed that the company was considering buying some or all of NZ Post’s stake (53%), but ultimately decided to buy two. We could not agree on one important issue.
“Specifically, we sought the flexibility to introduce private sector capital and governance functions into the business, and as a fully commercial investor, we sought to retain all options for exiting the investment in the future.” says Winneley.
“Naturally, these requirements did not align with the government’s objectives for Kiwibank ownership.”
Remain NZ owned
Established in 2022, Kiwibank is New Zealand’s largest owned retail bank. Overall, he is the fifth largest bank after New Zealand’s “Big Four” owned by Australia’s Big Four.
“This transaction ensures that Kiwibank remains 100% owned by Kiwi,” Robertson said.
“The government is fully committed to helping Kiwibank become a true competitor in the banking industry, ensuring that the bank continues to grow on a commercially sustainable basis and provides New Zealanders with a viable and competitive alternative. We are giving you access to the capital to deliver.”
The transaction is subject to the approval of the Reserve Bank of New Zealand.
Kiwibank Chief Executive Steve Jurkovich welcomed the news and said it would allow the bank to pursue its growth ambitions.
“The key to positive long-term impact is staying competitive and staying focused on balancing performance and purpose. Continuity is guaranteed,” he said.
Robertson said the new ownership structure would “simplify” the government’s ability to support Kiwibank.
Robertson said the bank will continue to operate “at a distance” from the government and will not affect its customers.
He added that the cost of the acquisition is under the budget’s existing borrowing program.
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Rebecca Zhu is based in Sydney. She focuses on the national politics of Australia and New Zealand. Any tips? Please contact her at [email protected]