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, preempting
future capital requirements and underpinning its platform for future growth, Mr
Fact file and FAQs
- Kiwi Group Holdings Limited will remain 100% Crown-owned
- Kiwi Group Holdings Limited is the holding company of Kiwibank Limited, Kiwi Wealth Management (which includes Gareth Morgan Investments), The New Zealand Home Loan Company Limited, Kiwi Insurance Limited, Kiwi Financial Services Retail Ltd and Kiwi Capital Funding Limited.
- Kiwibank has been operating for more than 14 years and has total assets, at 30 June, of $19.4 billion
- Kiwibank has more than 1 million customers, about 420,000 have Kiwibank as their main bank.
- Kiwi Group Holdings produced a profit of net profit after tax (NPAT) of
$131 million in the year to June 2016.
Is my money safe?
It’s business as usual. Your investments will still be managed by the same people.
The Kiwi Wealth KiwiSaver Scheme, the GMI Super Scheme and the Private Portfolio Service are unchanged. The management and investment processes at GMI and Kiwi Wealth remain the same and we continue to be regulated by the FMA.
What does this mean for GMI and Kiwi Wealth?
The sale gives us new shareholders whose long-term investment horizons, expertise and access to capital will be positive for GMI and Kiwi Wealth.
It also means we remain wholly New Zealand owned.
What does this mean for me as a customer?
It’s business as usual. Our customers will continue to get the excellent personal portfolio management services that GMI and Kiwi Wealth have been offering for more than 12 years.
Are there any immediate changes to the Kiwi Wealth KiwiSaver Scheme, GMI Super Scheme or GMI Private Portfolio Service offer documents?
No, we have reviewed these and no changes are immediately required for:
- Kiwi Wealth KiwiSaver Scheme Product Disclosure Statement.
- GMI Super Scheme Product Disclosure Statement.
- Private Portfolio Service Disclosure Statement and Client Agreement.
We have no plans to increase our fees as a result of this. We continue to review our fees on a regular basis.
Are you still owned by NZ Post?
Yes. NZ Post retain the majority shareholding in Kiwi Group Holdings Limited (the holding company for GMI and Kiwi Wealth) and Kiwibank.