a bank that is New Zealand owned, that ensure profits are retained here, they have confidence it is theirs,” Robertson said at a press conference this morning.
This is in response to the current shareholders, ACC and NZ Post, signaling their desire to exit the company.
The government forbade the NZ Super Fund, the other shareholder, from making any moves to partially privatize its ownership.
Therefore, Kiwi Group Holdings, the holding company for KiwiBank, has been fully taken over by the Crown, according to Finance Minister Grant Robertson.
Since its establishment 20 years ago, Kiwibank has grown from a “standing start,” according to Robertson, to have over a million clients.
$527 million will be given to NZ Super Fund in exchange for its 25% ownership.The bank’s 22 percent ownership by ACC, which is worth $464 million, will be sold. The Reserve Bank must provide final permission to the measure.
The new ownership structure makes it easier for us to fully assist Kiwibank in realizing its potential in the future. The Reserve Bank must give its regulatory approval before the deal can proceed.
“Kiwibank and NZ Home Loans will continue to operate independently and at arm’s length from the Government. The Crown’s ownership of KGH will be expressed through a newly incorporated Schedule 4A company, Kiwi Group Capital (KGC) with a separate board.
NZ Home Loans and Kiwibank will carry on with their independent operations free from interference from the government. Kiwi Group Capital (KGC), a newly created Schedule 4A corporation with a distinct board, will represent the Crown’s ownership in KGH.
The deal gives KGH a $2.1 billion market value. The simple asset transfer process involved in the transaction won’t affect the total worth of the Crown’s consolidated balance sheet. The multi-year capital allowance will be used to pay for the government’s portion to the acquisition, as required. This indicates that the cost of the acquisition is already included in the borrowing plan presented in Budget 2022.
“With Kiwibank staying in New Zealand hands, New Zealanders can continue to bank with a trusted, credible and competitive banking option that will remain fully locally owned. With a significant commitment from the Crown to invest in the bank’s future success, Kiwis can be assured Kiwibank has a very bright future,” Grant Robertson said.
