NZ Post to offload Kiwibank
(6 April 2016 – New Zealand) Kiwibank’s parent company, New Zealand Post (NZ Post) has said it will sell 45 percent of the lender to pay down debt. The stake is worth around NZ$495 million (A$445 million).
The sale will be split between New Zealand Superannuation Fund (25 percent) and Accident Compensation Corp. (20 percent), ensuring Kiwibank remains a public asset, NZ Post said. The deal is conditional on due diligence and a final decision will be made by 30 June.
The troubled postal service is selling the bank as letter volumes decline and job cuts. NZ Post Chairman, Michael Cullen, said the sell-off will allow NZ Post to strengthen its financial position as it transitions to a parcel-courier business while also giving the bank a better chance of growing to its potential.
“We believe now is the right time to broaden the bank’s support base within the wider public sector, and this provides the NZ Super Fund and ACC with a rare opportunity to secure a significant minority stake in a large and well-performing unlisted New Zealand business,” Cullen said in a statement.
“The proceeds would allow New Zealand Post to invest in its core parcels, packages and letters business and pay down debt. It is anticipated that a special dividend would also be paid to the Crown.”
The sale values Kiwibank -- the state-owned lender launched by the Labour-led government in 2002 -- at NZ$1.1 billion.
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