New Zealand Post Chief Executive Brian Roche announced today the successful 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 $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 $1,050 million.

Mr 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.”

Mr Roche said that as with any transaction of this size and complexity, there was a great amount of detail that had to be worked through. New Zealand Post is satisfied that the deal reached by the three parties is in the best future interests of Kiwibank, he said.

“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.”

New Zealand Post will now reinvest $90 million of its proceeds back into the bank, pre‐empting future capital requirements and underpinning its platform for future growth, Mr Roche said.

Media contact:

Richard Trow | richard.trow@nzpost.co.nz | 027 837 6179