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KINA BANK’S PROPOSED ACQUISITION OF ANZ PNG’S RETAIL AND COMMERCIAL/SME BANKING BUSINESS

On Monday 25 June 2018 at 8.00 am, we announced to the ASX and POMSOX that Kina Bank is to acquire ANZ’s retail and SME/Commercial banking business in PNG:

• Kina is to acquire ANZ’s retail and commercial/SME banking business in PNG

• ANZ is the 2nd largest Bank in PNG and this acquisition significantly increases Kina Bank’s lending market share to 8.8% from 5.8% and Kina Bank’s deposit market share to 9.9% from 4.8%

• Attractive financial metrics with the transaction expected to be more than 30% accretive to EPS on a FY17 proforma normalised basis, before amortisation

• The integration of Kina and ANZ PNG is expected to deliver material synergies. Initiatives to deliver the synergies are expected to be principally completed and implemented within the 2019 financial year

• Strong strategic fit and alignment with Kina strategy to deliver greater value to customers and expand its product and service offering

• Acquisition of ANZ’s 15 retail branch premises, 72 ANZ ATMs and over 1,800 ANZ EFTPOS terminals across PNG, substantially increasing Kina’s retail banking footprint to 21 branches, 82 ATM’s and over 1,800 EFTPOS terminals

• Purchase price of PGK24.2m (AUD10m)1 equating to the goodwill attributed to ANZ PNG business. The acquisition will be fully funded from existing cash and capital reserves

Kina Bank Limited (Kina Bank), a wholly-owned subsidiary of Kina Securities Limited (ASX:KSL POMSoX:KSL) (Kina Group), has entered into a binding Sale and Purchase Agreement to acquire the retail and commercial/SME banking business carried on by Australia and New Zealand Banking Group (PNG) Limited (ANZ PNG) in Papua New Guinea (PNG) (the Business). The key terms of the transaction, include:

• Kina Bank will acquire the Business, comprising:

1) Retail customer deposits and loans (including credit cards);

2) Commercial/SME customer loans and deposits;

3) ANZ PNG’s retail branch premises;

4) Relevant employees; and

5) ATMs and EFTPOS terminals (both in branch and standalone) used by ANZ PNG.


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pdf ASX Announcements: Kina Bank acquires ANZ’s PNG Retail, Commercial/SME Business

 

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