New Zealand Post Group has received a $495 million indicative offer from the NZ Superannuation Fund and Accident Compensation Corp to buy 25 percent and 20 percent respectively of subsidiary Kiwi Group Holdings, which owns Kiwibank.
The indicative offer, which is subject to a number of conditions including due diligence and board and regulatory approval, values KGH at $1.1 billion though the final price is still to be determined.
KGH owns Kiwibank and its associated businesses such as Kiwi Wealth Management and Kiwi Insurance.
NZ Post chairman Michael Cullen said the offer reflects the government’s absolute position that Kiwibank must remain in public ownership.
So if a future left-wing government wants to raise some cash without increasing taxes or cutting spending it can just direct its wealth funds to pony up some cash for non-transferable shares in fading SOEs. KiwiRail seems like a good candidate there. Good to know.