If the planned takeover of Westpac's Pacific company is authorised, Kina Bank said the new bank would have a new name and would be independent of Kina to increase banking sector competitiveness and consumer preference.
Kina's plan, according to Chief Executive Officer Greg Pawson, is to establish a new-branded bank for the nation that is independent and different from Kina Bank, disrupting the banking sector in a positive way.
“Our intention is to maintain the independent commercial banking licence of Westpac PNG,” Pawson said in a statement. “The newly-branded bank will have a new name and be separate from Kina Bank – and it will be governed by an independent PNG-based board of directors.”
Pawson said the new bank would compete directly and vigorously with Bank South Pacific, ANZ and Kina Bank. It will be a great outcome for customers from a service and product perspective. Creating a new brand means there would be no lessening of competition and no prospect of a duopoly or market dominance.”
Through Kina Securities, everyone in PNG will be able to invest and share in the ownership of the company, according to Pawson.
“The proposed acquisition of Westpac’s Pacific businesses will also pave the way for local investors to participate in the ownership of it through an equity raising,” he said. “Anyone can buy shares in the newly-branded bank through Kina Securities Limited. It’s a great opportunity for anyone in Papua New Guinea who wants to be part of Kina’s growth and success.”
Kina completed an equity raise in November to increase the bank's capital base and allow it to undertake the acquisition of Westpac's Pacific businesses.
Kina's proposed acquisitions of Westpac PNG and Westpac Fiji must be approved by regulators in both jurisdictions.
