The Minister of Finance, today announced that the Government will buy back the shares in Kiwi Group Holdings Limited, Kiwibank’s parent company, from New Zealand Post, the NZ Superannuation Fund and ACC. The transaction follows the Minister of Finance’s statement in February 2022 that Ministers and officials were considering the best ways for the Crown to express its ownership interest.
Minister Grant Robertson said in his announcement: “The Government is fully committed to supporting Kiwibank – ensuring the bank has access to capital to continue to grow on a commercially sustainable basis and offer a viable and competitive alternative for New Zealanders.
“This is a win-win for the Crown, Kiwibank and for New Zealanders,” Robertson said.
Leading law firm, MinterEllisonRuddWatts advised Te Tai Ōhanga | The Treasury on the transaction, which will allow the Crown to support Kiwibank to meet its future potential and become a genuine competitor in the banking industry.
The MinterEllisonRuddWatts cross-specialty team was headed by partner Chris O’Brien who led the negotiations, and worked with senior associate Adrianne Reid in providing specialist advice on public law and banking and financial services regulatory matters, with assistance from senior solicitor Vivien Liu. Partner Rodney Craig and senior associate Liz Rowe led the legal due diligence process, aided by solicitor Ethan McAuliffe. Specialist tax advice was provided by partner Andrew Ryan.
Upon reaching agreement, Partner Chris O’Brien said: “We were delighted to work alongside The Treasury and its other advisors on such a significant and strategically important transaction. We look forward to continuing to work with The Treasury and the vendors to bring this transaction to completion.”
The deal is subject to the Reserve Bank of New Zealand’s approval.
Other firms advising on the deal include Chapman Tripp, Simpson Grierson, Webb Henderson, Goldman Sachs and Ernst Young.
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