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- Kina Securities (KSL) has mutually agreed to terminate its $420 million acquisition of Westpac’s Pacific business
- The original agreement would have seen Kina secure Westpac Fiji and Westpac’s nearly 90 per cent stake in Westpac Bank PNG
- The decision to terminate the deal follows last week’s decision by Papua New Guinea’s Independent Consumer and Competition Commission to deny authorisation
- However Kina says it still expects its full year 2021 results will be in line with 2020’s report
- Kina Securities last traded at 84.5 cents on September 21
Financial services company Kina Securities (KSL) has terminated its agreement to purchase Westpac’s Pacific business.
Kina announced this morning it had mutually agreed to cease its purchase of Westpac Fiji and Westpac’s 89.91 per cent stake in Westpac Bank PNG – a deal that was hoped to expand Kina’s footprint into more markets.
The termination follows last week’s decision by Papua New Guinea’s Independent Consumer and Competition Commission to deny Kina’s authorisation to make the acquisition for $420 million.
The authority body said it was not satisfied the deal wouldn’t substantially lessen competition, nor benefit the public. The decision came just two months after a preliminary determination which also came to this conclusion.
Despite the setback, and taking into account the costs incurred in the transaction along with the loss of expected revenue from the acquisition, Kina said it anticipates its full year 2021 results will now be in line with its previous 2020 results.
Kina’s Managing Director and Chief Executive Officer, Greg Pawson, remained optimistic, despite the knock back.
“Whilst we are disappointed that the acquisition has not proceeded, this in no way changes the company’s strategy of seeking both organic and inorganic growth in PNG and the Pacific Region, and the outlook for the company remains positive,” Mr Pawson said.
Kina Securities last traded at 84.5 cents on September 21.
