The acquisition of PNG’s second-largest bank will include ANZ’s 15 retail branch premises, 72 ATMs and more than 1,800 EFTPOS terminals across PNG.
Kina’s retail banking footprint to increase
It will increase Kina’s retail banking footprint to 21 branches, 82 ATMs and more than 1,800 EFTPOS terminals.
Kina CEO Greg Pawson said the acquisition was a great development for the group and for Kina Bank.
“Completing this acquisition represents a key component of our refreshed five-year strategic plan,” he said.
The binding sale and purchase agreement will see Kina Bank’s lending market share increase to 8.8% from 5.8% and its deposit market share to 9.9% from 4.8%.
Integration of Kina and ANZ PNG is expected to deliver material synergies and initiatives
to deliver the synergies are expected to be principally completed and implemented within the 2019 financial year.
The sale delivers attractive financial metrics and is expected to be more than 30% accretive to EPS on an FY17 proforma normalised basis, before amortisation.
Strong strategic fit
Kina believes the acquisition is a strong strategic fit and aligns with its strategy to deliver greater value to customers and expand its product and service offering.
The purchase price of PGK24.2 million (A$10 million) equates to the goodwill attributed to the ANZ PNG business.
Pawson said: “The strength and capabilities that the acquisition will enable will allow us to better deliver on our purpose of empowering our customers and communities to have financial independence and security.
“Further, the acquisition reflects Kina’s aspirations to be a dynamic, progressive and accessible PNG financial services group.”