Westpac Group has today announced the sale of its Pacific businesses – Westpac Fiji and Westpac’s 89.91% stake in Westpac Bank PNG Limited – to Kina Securities Limited (ASX:KSL) (Kina Bank) for up to AUD$420 million.
As part of the sale agreement, Kina Bank has committed to jobs for all local employees, and to maintaining the current Westpac network as it currently stands with no reduction in branches, ATMs or instores.
Westpac’s Managing Director for Westpac Pacific and Specialist Finance, Michael Correa says the sale follows the Group’s strategic decision to focus on consumer, business and institutional banking in Australia and New Zealand.
He says they are taking another step in becoming a simpler, stronger bank while ensuring a high standard of banking services is maintained for Pacific customers, as well as providing new opportunities for people.
Correa says he is confident of Kina Bank’s commitment to service and that their customers will enjoy a smooth transition – particularly as their valued local staff will also transition to Kina Bank as part of the sale terms.
Kina Bank’s Chief Executive Officer Greg Pawson says they are very excited about this opportunity and creating a stronger and more effective banking competitor for PNG and Fiji.
Pawson says the acquisition is perfectly aligned with their current strategy to be a dynamic and innovative full service regional bank with a market leading digital platform.
Completion of the transaction is subject to local regulatory approvals and Kina Bank shareholder approval and is expected to occur in the latter part of 2021.
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