The National, Tuesday October 27th, 2015
THE Kina Bank has more than 11,000 clients following its acquisition of Maybank in July, the bank says.
The bank revealed this in a report following its listing on the Port Moresby Stock Market, and the Australia Stock Market, in July.
It is in accordance with the timetable in the prospectus for Kina’s A$97 million (K200.3m) initial public offering.
“Kina is the emerging force in the rapidly growing PNG financial services sector,” the bank said. After the acquisition, Kina Group now operates:
- The fourth largest bank in PNG – the largest wealth management business in PNG, with K5.3 billion in funds under management;
- one of the largest fund administrators in PNG, with more than 159,000 clients; and
- The leading stockbroking company in PNG.
The statement says the Maybank acquisition was completed for a purchase price of K353 million. As part of the completion process, the original purchase price was adjusted by an additional K12 million, with the variation due to changes in settlement arrangements, whereby Kina paid the purchase price to Maybank Group denominated partly in Papua New Guinea Kina and partly in US dollars.
The vendor therefore would assume currency risk, and Kina has agreed to progressively exchange the PNG Kina for the United States dollars at market rates over the next 12 months.
The adjustment to the terms of the acquisition would result in a slight increase in goodwill on the balance sheet of the merged entity, but would have no impact on earnings.
Kina remains confident of achieving the forecasts set out in the prospectus, including this year’s pro forma profit after tax of K45.3 million, and the anticipated dividend of K0.066 per share for the year ended December 31.