Westpac sells Pacific business to focus on Aust, NZ

WESTPAC Group says the decision to sell its Pacific business operations in PNG and Fiji to Kina Bank is to focus on consumer, business and institutional banking in Australia and New Zealand.
Kina Bank is in the process of acquiring an 89.91 per cent stake in Westpac PNG and 100 per cent in Fiji at a cost of AU$420 million (K1.9bil).
Group chief executive officer Specialist Businesses and Group Strategy Jason Yetton said: “We are taking another step in becoming a simpler, stronger bank while ensuring a high standard of banking services is maintained for our Pacific customers, as well as providing new opportunities for our people.
“Choosing the right purchaser for our businesses is important to us, our people and the communities we serve.
“We are pleased our Pacific businesses are being acquired by Kina Bank.
“Kina is a strong brand in the region and is well positioned with deep local knowledge to continue to help our consumer and business customers succeed.”
The sale price is made up of AU$315 million (K820mil) payable at the completion and AU$60 million (K156.27mil) to be paid six monthly over the following 18 months for Westpac PNG.
The sale price includes payments of up to AU$45 million (K156.27mil) which are scheduled to occur annually over 21 months following completion.