Heartland Group approves TSB Bank merger deal
- Heartland Group shareholders voted 94.80% in favour of merging Heartland Bank with TSB Bank.
- The transaction involves an aggregate consideration of NZ$620 million to acquire TSB from Toi Foundation.
- Heartland stated that the merger creates a larger, more competitive national bank with strong regional support.
Shareholders of Heartland Group (ASX:HGH) approved a proposal to acquire TSB Bank from Toi Foundation and merge it with Heartland Bank.
The approval follows a special meeting where investors representing 58.09% of issued capital voted, passing the resolution with 94.80% support.
"It marks an important milestone towards bringing together two complementary banks to create a larger, more competitive New Zealand bank, with greater capacity to invest in future growth," said Heartland Group CEO Andrew Dixson.
Under the NZ$620 million agreement, Toi Foundation will receive NZ$250 million in Heartland shares, issuing 200 million shares at NZD$1.25 per share to take an approximate 17.5% stake in the parent company.
The transaction remains subject to final regulatory approvals from the Reserve Bank of New Zealand before the combined business can launch as TSB Heartland Bank.
Following the announcement, the Heartland Group Holdings share price was unchanged at $1.02.
The deal expands Heartland's footprint across New Zealand while retaining TSB's existing operational hub and branch presence in Taranaki.
