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Govt gets $200m from Kiwibank share sale

NZ NewswireNZ Newswire 31/10/2016

Kiwibank © Getty Kiwibank The government is welcoming the partial sale of Kiwibank to the NZ Superannuation Fund and ACC, which has just been completed.

"The deal keeps Kiwibank in public ownership and gives the bank access to additional sources of capital," said Finance Minister Bill English.

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

NZ Post is netting $494m from the deal.

The NZ Super Fund will take a 25 per cent stake in the bank while ACC gets a 22 per cent holding.

"Investment opportunities of this size and potential are rare in New Zealand," said NZ Super Fund chief executive Adrian Orr after the deal was completed on Monday.

"We believe Kiwibank will make an important contribution to portfolio returns over the long term and take pleasure in adding another major New Zealand investment to the Fund."

The investors valued Kiwibank at $1.05 billion.

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