“From the proposals we received, Heartland Group Holdings is the best deal. This is both in terms of value and – given TSB and Heartland’s complementary strengths – in meeting key concerns for the community, such as job retention, branch retention and TSB presence in the Taranaki region.
“We also believe that the Heartland Group Holdings proposal is a better option than retaining TSB as a standalone bank in Toi Foundation ownership.”
The proposed deal will see Toi reinvest in the new merged bank, so it has a 17.5% stake in the entity. Those from Toi and TSB will also have representation at board level.
Toi expects the $30m of grants it distributes in Taranaki every year to rise to $50m over time once the sale is completed.
Ussher said Toi trustees agreed to advance the sale after considering 1267 submissions from Taranaki residents. The consultation was required under Toi’s trust deed.
Earlier this week, the High Court dismissed a community group’s application for an interim injunction to stall the TSB’s sale.
The judge effectively said the group, which claimed Toi didn’t consult properly, had no legal leg to stand on.
Heartland chief executive Andrew Dixson said Toi’s vote was an important milestone, which precedes Heartland shareholders voting on the proposed deal on September 30.
“Heartland respects the importance of TSB’s connection with Taranaki and preserving this through the proposed merger.
“Taranaki will remain a key operational hub for customer-based banking services, including maintaining a local branch network and customer-facing roles in Taranaki. In recognition of each bank’s long history and deep connection to regional New Zealand, the Heartland Bank and TSB brands will be reflected in the merged bank’s name and branding strategies.
“TSB Heartland Bank will be a stronger New Zealand challenger bank …”
Kiwi Group Capital chairman David McLean said, “Kiwi Group Capital believes in continuing to build a stronger New Zealand-owned banking alternative and will continue to consider opportunities that support that objective.
“Our focus remains on supporting Kiwibank’s continued growth and the important role it plays in increasing competition and delivering better outcomes for Kiwi.”
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