ACC accepts Crown offer for KGHL/Kiwibank shareholding
ACC confirmed today it will accept the Crown's offer for its 22 percent shareholding in Kiwi Group Holdings Ltd.
ACC confirmed today it will accept the Crown’s offer of about $464 million* for its 22% shareholding in Kiwi Group Holdings Ltd./Kiwibank.
“We’re proud to have played a part in the bank’s growth story since first investing in 2016,” said ACC Chair Steve Maharey. “We’re leaving the bank in much better shape as it embarks on the next stage of its journey, ably led by Chief Executive Steve Jurkovich and his team.”
ACC will re-invest the funds across a wide range of assets, generating returns to help meet the cost of injuries in New Zealand and helping ensure levies are lower than they would otherwise need to be.
ACC invested $285 million in Kiwibank in 2016 and 2017. We invested alongside the NZ Super Fund, joining existing shareholder NZ Post. Total Kiwibank assets have grown by almost 50 percent since then.
The Crown’s offer is an opportunity to exit on commercial terms, said Paul Dyer, ACC’s Chief Investment Officer.
ACC strives to achieve the best possible mix of long-term returns and risk in our investment fund, Mr Dyer said. Kiwibank has been ACC’s biggest individual investment and the bank’s strong growth means it has remained prominent in a portfolio that is otherwise extremely diversified.
ACC is one of the largest investors in New Zealand. More than 60 percent, or roughly $30 billion worth of our assets are invested in New Zealand companies and is a major shareholder in 17 NZX listed companies.
We invest to ensure New Zealanders pay less for accident cover. Some long-term injured who are covered by the scheme will need support for decades to come. We need to provide certainty that they will be funded, and the costs won’t be left to future generations.
*Subject to completion of all elements of the transaction. The acquisition is conditional on approval by the RBNZ.
More information
Find more information about our investments.
See our latest performance figures in our annual report, starting on page 56.
