The NZ Super Fund has invested $263 million for a 25% stake in KGHL, and ACC has invested $231 million for a 22% stake – with the $494 million deal based on the investors valuing KGHL at $1.05 billion.
Chief executive Brian Roche said he was pleased that the transaction has been finalised, having been actively discussed by the parties since early 2015 and formally notified to the NZX in April, 2016.
“This is a big day for Kiwibank and – ultimately, for New Zealanders, who will retain 100% ownership of a much stronger bank. Kiwibank now has access to new streams of capital and is positioned strongly to compete against the other major banks.
“New Zealand Post retains majority ownership of Kiwibank and will use the proceeds to pay down debt and pay a special dividend to the Crown. It can now focus more time and energy on completing the transformation of its parcels, logistics and mail business.”
There was still more detail to be worked through but Roche said the deal was in Kiwibank's best interests.
“It’s a fair price that reinforces the investors’ confidence in Kiwibank as a good long term investment, while also reflecting the prescribed limits on their ability to on-sell their stakes and the general market conditions faced within the financial sector.”
