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Kiwibank partial sale goes through

NZ Newswire logoNZ Newswire 31/10/2016

The partial sale of Kiwibank to the NZ Superannuation Fund and ACC has been completed with NZ Post netting $494 million from the deal.

The NZ Superannuation Fund will take a 25 per cent stake in the banks' holding company Kiwi Group Holdings Limited for $263m while ACC gets a 22 per cent holding for $231m.

"Investment opportunities of this size and potential are rare in New Zealand," said NZ Super Fund Chief Executive Officer Adrian Orr said.

"We are delighted to become part of the Kiwibank story and look forward to working with ACC and NZ Post to support Kiwibank's on-going success.

"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 NZ Super Fund has more than $4 billion in New Zealand, including large investments in Kaingaroa Timberlands, Datacom, Metlifecare and rural farmland.

"This is a big day for Kiwibank and - ultimately, for New Zealanders, who will retain 100 per cent 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," said NZ Post chief executive Brian Roche.

The investors valued Kiwibank at $1.05b. Mr Roche said NZ Post will reinvest $90m of the proceeds back into the bank

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