Photo credit: Kina Bank
Kina Securities (KSL) has called off its deal to buy Westpac's Pacific division.
Kina and Westpac Banking Corporation have mutually decided to terminate their purchase of Westpac Fiji and Westpac's 89.91 per cent interest in Westpac Bank PNG, which was intended to broaden Kina's market reach.
The transaction was subject to numerous regulatory clearances, and the cancellation comes after Papua New Guinea's regulator, the Independent Consumer and Competition Commission, denied Kina's proposed acquisition of Westpac PNG.
The authority body stated that it was unconvinced that the acquisition would not significantly reduce competition or benefit the public. The verdict was made only two months after a preliminary determination reached the same outcome.
Kina anticipates its full-year 2021 earnings to be in line with the Company's full-year 2020 results, after accounting for transaction expenses and projected revenue from the acquisition that is no longer expected.
Kina’s Managing Director and Chief Executive Officer, Greg Pawson said about the termination, “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. The outlook of the company remains positive.”
Reference: Loop (22 September 2021). “Kina Securities Terminates Agreement”.
