The chair of Kiwibank’s parent company has opened the door to a potential merger with TSB, as opposition to the bank's current merger plans with Heartland Bank is set to reach the High Court tomorrow.
Speaking to BusinessDesk, McLean said the state-owned holding company does not want to interfere in the proposed merger between TSB and Heartland, but they would be interested in "getting together" with the Taranaki institution.
The comments come at a critical time for the future of TSB. A group called the Taranaki Community Accountability Society has been formed to seek an interim injunction stopping the Heartland merger, with a court hearing scheduled for tomorrow.
Chartered accountant Kevin Landrigan, former TSB chair Elaine Gill, and Aorangi Bobbie Matsuda are leading the society. They are fighting to keep the bank 100% locally owned and have publicly criticised the sale process.
Financial institutions TSB and Heartland announced plans to join forces in June to create TSB Heartland Bank. Under the $620 million proposal, TSB owner Toi Foundation would sell its entire shareholding to Heartland Group. In return, the community trust would take a 17.5% stake in the newly formed bank, alongside debt and a vendor loan.
This move would establish New Zealand's sixth-largest home loan provider and increase the foundation's income stream for regional grants.
Despite the promised benefits, the proposal has faced strong resistance. Many residents fear the region will lose control of its historically independent bank.
Public consultation on the deal recently concluded. The Toi Foundation officially closed the feedback period on August 12, having been forced to reopen submissions due to an earlier date miscalculation.
Trustees are now considering the community response and are expected to make a final decision later this month. If the foundation approves the deal, the merger will still require backing from Heartland shareholders at a September 30 meeting, followed by clearance from the Reserve Bank.
McLean made it clear Kiwibank is not attempting to derail tomorrow's court proceedings or the existing Heartland deal. However, his public declaration of interest presents a major alternative for TSB if the Heartland merger falls through.
