The High Court has dismissed an interim injunction sought by the Taranaki Community Accountability Society to halt the proposed sale of New Plymouth-based TSB to Heartland Group Holdings.
The decision paves the way for the ten trustees of the Toi Foundation to cast their votes on the $620 million transaction.
The Taranaki Community Accountability Society had argued the community lacked adequate information to respond to the proposal. Their legal counsel, Daniel Grove, told the High Court in Wellington that published materials were misleading and one-sided.
However, counsel for the Toi Foundation, Justin Smith KC, rejected those claims and argued community opposition was not a matter the trustees were legally required to weigh.
Justice Andru Isac has now rejected the society's bid for an interim injunction, leaving the foundation free to proceed with its decision.
Selling the TSB shares requires a resolution signed by at least eight of the ten trustees. The foundation has indicated the deal would yield significantly higher financial returns, boosting its capacity to fund community grants across Taranaki.
The decision coincides with a massive financial milestone for Heartland Group Holdings. The trans-Tasman lender has just posted a $93.2 million annual profit for the year ending June 2026, representing a $54.4 million jump from the previous year.
Profit growth was heavily driven by widened profit margins and a rapidly expanding reverse mortgage portfolio on both sides of the Tasman. In New Zealand, reverse mortgage receivables jumped 16.8% to reach $1.44 billion. Australian reverse mortgages also grew by nearly 20%.
Heartland recorded a 10.8% increase in rural lending to $674.8 million. The bank credited this growth to strengthened livestock finance partnerships and an expanded regional presence.
If the Toi Foundation trustees approve the sale and other conditions are met, Heartland will merge with TSB to create TSB Heartland Bank. The foundation would go from owning 100% of TSB to holding roughly 17.5% of Heartland Group.
Heartland will hold a special shareholder meeting on September 30 to vote on the merger.
The combined entity will still need regulatory sign-off from authorities in New Zealand and Australia, with a target completion date set for December.
