At its General Meeting on April 15th in Port Moresby, Kina Securities Limited (KSL) shareholders unanimously voted in favour of Kina Bank's takeover of Westpac PNG and Westpac Fiji.
CEO Greg Pawson said in a statement that the shareholders' vote of confidence was "amazing."
“We are very excited about this opportunity, and creating a stronger and more effective banking competitor for PNG and Fiji. The acquisition is perfectly aligned with our current strategy to be a dynamic and innovative full-service regional bank with a market-leading digital platform.”
Following the planned takeover, a newly branded bank will emerge, independent and distinct from Kina Bank, and it will compete directly with all commercial banks in Fiji and PNG, including Kina Bank.
“It’s a really positive story and it will be a great outcome for customers from a service and product perspective. Creating a brand-new bank means there will be more customer choice, more competition and more innovation. With the proposed acquisition we will be able to introduce fee free banking options; a new suite of world-class digital products and services; and we will be able to re-price business lending, making it more cost-effective for business customers to access funding.”
According to Pawson, there would be no reduction in rivalry or the possibility of a duopoly or market domination.
He claims that the planned transaction would position Kina to return banking to its roots on a larger scale, with improved customer support and an emphasis on lowering banking costs in both PNG and Fiji.
According to Pawson, one of the major advantages of this proposed transaction is that it would enable local investors to engage by equity raising and provide opportunities for PNG investors to be a part of an ASX/PNGX listed firm, joining many other local PNG investors including Comrade Trustee Services Limited and MRDC.
“It means everyone has the opportunity to be an active shareholder in an ASX/PNGX listed company which provides more local investment opportunities, this is important for the region,” added Pawson.
In both Fiji and PNG, regulatory approval is needed for the acquisition.
