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

NZ Post selling part of Kiwibank

NZ Post Chairman Michael Cullen announced today that NZ Post wants to sell 45% of Kiwibank. That’s a similar proportion to the part asset sales of the power companies in the last term.

Stuff: NZ Post to sell 45 per cent of Kiwibank for $495m cash injection

Troubled state-owned New Zealand Post is selling 45 per cent of Kiwibank, 25 per cent to the New Zealand Super Fund and 20 per cent to ACC.

The deal values Kiwibank at $1.1 billion, NZ Post chairman Sir Michael Cullen said. Both entities are owned by the New Zealand government.

If the sale goes ahead, NZ Post will receive $495 million for its stake.

So that’s still public ownership but with shares being sold to investors the Super Fund and ACC.

John Key is in favour.

Prime Minister John Key said it was good solution

Key rejected suggestions it was a compromise to get around the Government’s opposition to further selling off of state assets.

Labour seems to be backing it too:

Labour leader Andrew Little said it was important Kiwibank stayed in public ownership.

“And this does that, there are some good conditions around it,” he said.

“This provides a way to get extra capital from these sovereign wealth funds, and hopefully for NZ Post to use the funds that they raise from the sale, to put more capital into Kiwibank.

Meanwhile, Labour Party state-owned enterprise spokesman David Parker said Cullen should be congratulated on the idea.

“Michael Cullen should be congratulated for securing a route to expand KiwiBank and keep it in public ownership, given the refusal of National to provide more capital for NZ Post or KiwiBank.

Greens have more concerns:

Green Party co-leader James Shaw said the move opened the door to partial privatisation.

“This deal makes it harder for the Government to use Kiwibank to drive competition in the banking sector, as the Green Party announced we’d do, because the Government can’t direct the Super and ACC funds in the way it could have directed Kiwibank,” he said.

“The fact is the Government forced Kiwibank’s hand and today’s announcement will make it easier than it was before to move Kiwibank into private ownership.”

But Cullen…

…said Shaw’s argument, that the Government was able to direct Kiwibank, was “completely incorrect”

“Kiwibank is a 100 per cent owned subsidiary of New Zealand Post but in terms of the Companies Act and Reserve Bank requirements it must act independently in terms of its activities.

“The Government cannot direct New Zealand Post, nor through New Zealand Post can it direct Kiwibank.”

And the person who made Kiwibank happen, Jim Anderton via Newshub:

Founder of Kiwibank, Jim Anderton believes the move to sell 45% of New Zealand Post shares in Kiwibank was the best option available.

So part from the Greens it looks like there will be little opposition.

Postie minus

NZ Post have confirmed that urban mail deliveries will drop from six to three days a week.

This is tough on the few hundred posties who will lose their jobs but otherwise this doesn’t bother me. Obviously mail deliveries will have reduced substantially and will probably keep dropping.

We as often don’t get physical mail here as we get some so will pretty much not notice any difference when the change happens mid-year.