Kiwibank ownership changed

NZ Post has sold nearly half of it’s shares in Kiwibank to two other Crown entities, the Super Fund and ACC.

The NZ Super Fund and the Accident Compensation Corporation’s purchase of minority stakes in Kiwibank has been welcomed by Finance Minister Bill English and State Owned Enterprises Minister Todd McClay.

“The deal keeps Kiwibank in public ownership and gives the bank access to additional sources of capital,” Mr English says.

“It also returns a dividend of about $200 million to the Government which can be used for other high priorities.”

Under the terms of the deal, NZ Post has sold a 25% shareholding in Kiwibank to the Super Fund and a 22% shareholding to ACC. The remaining Kiwibank shares are retained by NZ Post.  NZ Post, the NZ Super Fund and ACC are all owned by the Crown.

Mr McClay says the deal recognises that the business operations of NZ Post and Kiwibank are at very different stages of development.

“The transaction will result in a greater separation of NZ Post’s and Kiwibank’s operations and will allow the boards and management of both businesses to focus on their respective markets.”

Green co-leader James Shaw responded:

The privatisation of Kiwibank starts today with a 47% sale to ACC and Super Fund.

would have invested $100 million directly in Kiwibank meaning we’d still own it in 5, 10, 20 years’ time…

https://www.greens.org.nz/policy/smarter-economy/kiwibank-can-get-low-rates-all-us

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9 Comments

  1. Blazer

     /  1st November 2016

    Expansion of Kiwibank is a no brainer.The Greens are right.This is the first move by a govt that really wants to sell it off.Kiwibank is the cornerstone for banking reform in NZ.People and the govt should support it ,instead of ostensibly aussie owned (but really U.S/U.K)banks that rinse kiwis out and export billions each and every year.

    Reply
    • Alan Wilkinson

       /  1st November 2016

      If the major banks were “rinsing Kiwis out” then their customers would be rushing to Kiwibank.

      Reply
      • Kitty Catkin

         /  1st November 2016

        I think so, too, Alan. People aren’t stupid, on the whole. I am with ANZ and was with National for some things-if I didn’t like ANZ, I’d leave and go elsewhere. What is rinsing out, anyway ? (In this context, I mean)

        I was turned off Kiwibank because of the amateurish image that its ads presented.

        Reply
      • Blazer

         /  1st November 2016

        changing banks is hard work…too hard for most.The profits they export are quite phenomenal…!

        Reply
        • @ Blazer – ” … changing banks is hard work…”

          I can attest to that from personal experience … and for a plethora of reasons …

          It breaks my heart when I think that we, the people of Aotearoa New Zealand, could have enjoyed those [banking] profits much more fully these last 32 years and, as James Shaw points out, “still own it in 5, 10, 20 years’ time…”

          Its a Blue Rinse all right … in more ways than one …

          “FIIRE … I bring you to burn …
          FIIRE … I bring you to learn …”
          – misheard lyrics from a song by Tom Jones (I think?)

          Reply

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