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The major bank has announced that it has entered into an agreement to sell its retail, commercial and small- to medium-sized enterprise (SME) banking businesses in Papua New Guinea as it looks to “simplify” its offering.
Kina Bank, a wholly owned subsidiary of Kina Securities Limited, a PNG company listed on the Australian and Port Moresby Stock Exchanges, has entered into a binding sale and purchase agreement to acquire ANZ’s retail customer deposits and loans (including credit cards) and commercial/SME customer loans and deposits; ANZ PNG’s 15 retail branch premises and relevant employees; and 72 ATMs and more than 1,800 EFTPOS terminals (both in-branch and standalone) used by ANZ PNG.
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The businesses being sold serve 85,000 retail and 6,000 commercial and SME customers and include around $150 million in lending assets and approximately $450 million in deposits.
The deal has been agreed on a purchase price of PGK 24.2 million (approximately $10 million), “equating to the goodwill attributed to ANZ PNG business”.
The acquisition will be fully funded from existing cash and capital reserves.
Subject to regulatory approval, the sale transfer is expected to be complete by late 2019.
Kina CEO Greg Pawson commented: “Completing this acquisition represents a key component of our refreshed five-year strategic plan. 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.
“The customers of ANZ PNG’s business will benefit from this transaction. On day one, there will be no change to their offering. Over the near future, their offering is expected to be enhanced as Kina continues to execute on its digital strategy. They will also experience Kina’s differentiated value for money proposition.”
ANZ has said that the decision to sell its business in PNG formed part of its “simplification strategy” while also supporting customers with trade and capital flows in the region.
Speaking of the decision to sell, ANZ’s managing director, institutional Australia, Graham Turley, said: “We remain committed to running a world-class institutional and large corporate banking business in PNG, where we see great opportunities for growth. ANZ has been in this market uninterrupted for more than a century and we continue to have a positive outlook for the PNG economy.
“Our retail, commercial and SME operations in PNG are strong, successful businesses that will benefit from Kina Bank’s focus on retail banking. ANZ will continue to service multinational corporations and large corporates operating in PNG.”
ANZ has previously announced the sales of its retail and wealth businesses in Singapore, Hong Kong, China, Taiwan, Indonesia and Vietnam.
It also recently announced that it would be selling its 55 per cent stake in Cambodia’s Royal Bank to Japan’s J Trust in a deal that could result in a $30 million loss.
[Related: Businesses digging deep as bank fees soar]
