It’s not Kiwibank up for sale, it’s NZ Post selling down its shareholding

Labour MP Michael Cullen comments on his meeting with the SFO after the Privileges Committee, Parliament, Wellington, New Zealand, Monday, September 22, 2008. Credit:NZPA / Ross Setford

Troubled state-owned New Zealand Post is selling 45 per cent of Kiwibank, 25 per cent to the New Zealand Super Fund and 20 per cent to ACC.The deal values Kiwibank at $1.1 billion, NZ Post chairman Sir Michael Cullen said. Both entities are owned by the New Zealand government.

“There’s no sale of Kiwibank outside Government ownership,” Cullen said, adding that if there had been a sale into private ownership it would have “almost certainly led to a higher price”.

The two organisations will be required to hold their stakes in the bank for at least five years. Should they eventually sell, the shares would be sold back to the Crown.

NZ Post is losing up to $30 million a year thanks to its mail business, while Kiwibank is becoming increasingly profitable.Cullen said it was clear that NZ Post was unlikely to be able to put more money into Kiwibank, and that as the bank grew it may need fresh injections.

It was possible that the added capital would come from NZ Post further selling down its stake.

Finance Minister Bill English said the deal kept the bank in NZ ownership.

“Kiwibank will remain 100 per cent government-owned – that is a bottom-line,” Finance Minister Bill English said.

Call me a cynic, but I expect the “Future of Work” crews like Vic Crone and Grant Robertson to come up with a plan.

ACC and The “Cullen Fund” are interested in owning part of Kiwibank.

But will the cash save NZ Post or simply delay the inevitable?

 

– Stuff

 

[Updated]


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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

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