The acquisition, worth K24.2 million, increases Kina Banks banking footprint in PNG and the banking market share.
ANZ will be focusing solely on Institutional and Large Corporate banking in the market.
The key terms of the transaction, include Kina Bank acquiring the Business, comprising of
1) Retail customer deposits and loans (including credit cards);
2) Commercial/SME customer loans and deposits;
3) ANZ PNG’s 15 retail branch premises, increasing Kina’s branches to 21;
4) Relevant employees; and
5) 72 ATMs and 1, 800 EFTPOS terminals (both in branch and standalone) used by ANZ PNG.
Kina Bank has paid a deposit of K4.8 million on the purchase price on execution of the Sale and Purchase Agreement.
In a statement Kina CEO, Greg Pawson, said the acquisition is a great development for the group and for Kina Bank.
“Completing this acquisition represents a key component of our refreshed five-year strategic plan. The strength and capabilities that the acquisition will enable will allow us to better deliver on our purpose of empowering our customers and communities to have financial independence and security. Further, the acquisition reflects Kina’s aspirations to be a dynamic, progressive and accessible PNG financial services group.”
“The customers of ANZ PNG’s Business will benefit from this transaction. On day one there will be no change to their offering. Over the near future, their offering is expected to be enhanced as Kina continues to execute on its digital strategy. They will also experience Kina’s differentiated value for money proposition.”
Meanwhile ANZ says the decision is in line with ANZ’s simplification strategy, while also supporting customers with trade and capital flows in the region.
Also in a statement ANZ Managing Director, Institutional Australia, Graham Turley said: “We remain committed to running a world-class Institutional and Large Corporate banking business in PNG, where we see great opportunities for growth. ANZ has been in this market uninterrupted for more than a century and we continue to have a positive outlook for the PNG economy.
“Our retail, commercial and SME operations in PNG are strong, successful businesses that will benefit from Kina Bank’s focus on retail banking. ANZ will continue to service multinational corporations and large corporates operating in PNG,” Mr Turley said.
The sale transfer is expected to be completed by late 2019.Subject to regulatory approval.