Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Westpac (ASX:WBC) denied sale approval: Kina (ASX:KSL) share price drops

The Kina Securities Ltd (ASX: KSL) share price dropped after Westpac Banking Corp (ASX: WBC) was denied regulatory approval to sell Kina part of its business.

Westpac wanted to sell its Pacific businesses

In December 2020, Westpac announced that it intended to sell its Pacific business. Westpac said that this sale formed part of the strategy to simplify its operations and focus on banking in Australia and New Zealand.

Westpac had arranged to sell its 89.91% stake in Westpac Bank PNG Limited as well as its Westpac Fiji business to Kina for $420 million. The sales were subject to regulatory approval in Papua New Guinea and Fiji respectively.

Papua New Guinea wasn’t keen

Westpac said that on 22 July 2021 Papua New Guinea’s Independent Consumer and Competition Commission (ICCC) released a draft determination which outlined that it was considering denying the sale of Westpac’s stake in Westpac Bank PNG Limited.

Papua New Guinea denies Westpac sale

The Papua New Guinea ICCC has now released the final determination and it confirms that authorisation is denied for the sale of 89.91% stake of Westpac Bank PNG Limited to Kina.

Westpac said that it “acknowledges the ICCC’s determination and will continue to operate these businesses while it reviews the impact on the sale to Kina Bank”.

Kina responds

In Kina’s statement on the outcome it outlined the reasons why the sale was rejected. The ICCC said it was not satisfied with the acquisition because it doesn’t think it will lessen competition in the PNG market or benefit the public.

Kina said that it is assessing the implications of the ICCC’s decision not to grant authorization and is considering its options. It will update the market when there is anything further to announce.

Final thoughts on Westpac and the Kina share price

It isn’t clear from either Westpac or Kina’s announcements but there may be the ability to appeal this decision, or perhaps alter the transaction in such a way that it could be granted by the PNG ICCC. Unfortunately we will have to wait and see what happens with this, hopefully there will be further updates in the weeks or months ahead.

It has been a bit of a blow for the Kina share price, it is down over 3% at the time of writing. The last time the Kina share price was this low was December 2020.

This hasn’t materially effected the Westpac share price, as it is such a small sale when compared to the overall size of Westpac. However it does pose a logistical annoyance, as offloading its Pacific businesses is part of Westpac’s strategy to simplify.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW or simply entering your email below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Are you stuck wondering where to invest right now? Have you got cash 'sitting on the sidelines'? Are you looking for dividend income AND growth but don't know where to start? Rask's expert ASX analyst team has just released a full report, detailing where we'd invest $10,000 right now.

Not only are we offering these 11 investment ideas completely FREE, we've also released an in-depth podcast to go with the report!

So, whether you have $2,000 or $50,000, our brand new analyst report could help transform your watchlist. Right now, you can get the full analyst report emailed to you for FREE by CLICKING HERE NOW.

At the time of publishing, Jaz does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

LIVE ASX Chat - Join in!

Play Video

Keep reading:

Rask Analyst’s $10,000 Hypothetical Portfolio 

Rask Australia’s expert analysts have just released 11 stock & ETF positions they’d buy right now as part of a $10,000 hypothetical portfolio. 

Completely free, this report comes with the exact ticker codes, how much the analysts would invest and a detailed over the company and why we like it. Plus a 60-min podcast! 

Simply enter your email address and we’ll send you the report.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.