NZ Post announces Kiwibank deal completion
New Zealand Post has announced the completion of the partial sale of Kiwibank’s holding company Kiwi Group Holdings Limited (KGHL) to the NZ Super Fund and the Accident Compensation Corporation (ACC). The NZ Super Fund has invested $263m for a 25% stake in KGHL, and ACC has invested $231m for a 22% stake – with the $494m deal based on the investors valuing KGHL at $1,050m.
New Zealand Post’s Chief Executive Brian Roche said: “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.”
Roche added that New Zealand Post will now reinvest $90m of its proceeds back into the bank.