Heartland Group Holdings shareholders have given the go-ahead to the $620 million takeover and merger of its Heartland Bank with TSB.
Shareholders voted on the proposed TSB merger at a special meeting yesterday, with 94.8 percent of the votes cast in favour.
Heartland Group Holdings is the parent of the Heartland Bank.
CEO Andrew Dixson said Heartland shareholders’ approval reflected confidence in Heartland’s ability to deliver the merger successfully.
“Yesterday’s approval is a strong endorsement from our shareholders of the strategic rationale for this transaction and the long-term value it is expected to create.”
It would create a stronger bank, Dixson said.
“It marks an important milestone towards bringing together two complementary banks to create a larger, more competitive New Zealand bank, with greater capacity to invest in future growth.”
The Heartland Group shareholders’ approval follows a vote in favour of the merger by TSB’s shareholder, the Toi Foundation, in August.
Dixson stressed that Heartland would keep up TSB’s strong connection and longstanding commitment to Taranaki.
“Subject to the remaining conditions being satisfied and the Proposed Transaction completing, Taranaki would remain a key operational hub for customer banking services, including through its local branch network and customer-facing roles.”
He said the merged bank would also retain Heartland Bank’s existing nationwide network, creating a national bank with a clear regional commitment.
Last week, the Reserve Bank announced it had requested an independent report into TSB, after the Taranaki-based bank reported issues concerning its capital and liquidity ratios.
Consultancy firm Deloitte was appointed to carry out the independent report, with the findings due in November.
The Heartland Group said the completion of the proposed transaction remains subject to satisfaction of the remaining conditions, including the material adverse change condition, and receipt of the necessary regulatory approvals.