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Sale of Kiwibank stake moves ahead

NZ Newswire logoNZ Newswire 14/09/2016

The proposed sale of a sizeable chunk of NZ Post's stake in Kiwibank has moved a step closer after an application to approve the deal was lodged with the Reserve Bank.

The struggling state-owned post operator in April announced it was looking to sell 45 per cent of its stake in the bank to the Superannuation Fund and ACC, and now says it has agreed key commercial terms with them.

NZ Post chief executive Brian Roche said details of the deal will be released once the Reserve Bank, which needs to approve any change in the bank's ownership, makes a decision on the application.

NZ Post expects to get about $495 million from the sale and says it will use the money to pay down debt, play a special dividend to the government and invest more on its parcels business.

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