BSP stretches into Pacific

 BANK South Pacific (BSP) will acquire some operations of Westpac Banking Corporation (Westpac) in the Pacific, chairman Kostas Constantinou said.

He said BSP has entered into an agreement to acquire Westpac’s operations in Samoa, Cook Islands, Solomon Islands, Vanuatu and Tonga for AU$125 million (K253.9m). 

Completion of the sale was anticipated for mid this year – subject to the parties obtaining necessary statutory, regulatory and third party approvals. 

Prior to completion, Westpac would continue to own and manage banking operations in these countries. Constantinou said BSP was pleased to have that opportunity to increase its commitment to the Pacific. 

“It is a regional strategy. We have and will continue to have a strong presence in the region for a very long time. BSP is living up to its name as the Bank South Pacific.” 

Westpac Pacific general manager Greg Pawson said selling the bank’s operations in those nations reflected Westpac’s desire to increase focus on its growth plans in two largest markets, PNG and Fiji.

“These markets support our international aspirations by being closely tied to Asia, Australia and New Zealand and the strong flows of capital, trade, and migration. 

“Indeed, we continue to see significant opportunities in both Fiji and PNG markets and will continue to invest in expanding our infrastructure and capability in the region.” 

Pawson said in providing services to this region, it was vital Pacific Islanders were supported by a bank that was an expert in operating in smaller markets. 

He said the transaction would not have material impact on Westpac group’s financial position.

BSP, a major commercial banking and finance group across Papua New Guinea, Solomon Islands and Fiji, has assets of approximately K16 billion.

Chief executive officer Robin Fleming said: “BSP chairman and executive will undertake a programme of pre-completion visits over the next few months to introduce BSP to customers and staff in those Pacific Island countries and make initial support representations to local regulatory authorities, emphasising that there will be a smooth transition post completion.”