The Government has given the green light to a partial privatisation for KiwiBank.
The bank now has the opportunity to raise up to $500 million from investors.
NZ Herald Wellington business editor Jenee Tibshraeny explains the deal further.
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Speaker 1 (00:00):
Together do for cel.
Speaker 2 (00:01):
So the government has given the green light to a
partial privatization of Kiwibank. The bank's going to raise up
to half a billion dollars from investors. Our Finance Minister
Nikola Willis told us earlier why we're not raising more
than that?
Speaker 1 (00:12):
Yeah, Look, it's a really good question. Actually, Kiwibank is
in the midst of a digital transformation and their view
is that completing that is actually necessary before they go bigger,
and in terms of the Crown getting the most value
for its stake, that we will get more value in
(00:33):
the future once that transformation has occurred.
Speaker 2 (00:35):
Genative Trainee is The Herald's Wellington Business editor and with
us evening Janey Hi Heaver right, So more to come
and what do you think listed on the share market?
Speaker 3 (00:44):
I think if National and Act had their way then
Kiwibank will be listed on the New Zealand Stock Exchange.
I think there's probably still be some restrictions around that though,
like Nichola Willis suggests that she wants kee We Bank
to be for the Governant to still have a decent
chunk of ownership and for it largely to remain New
(01:04):
Zealand owned so I think if it is listed, it'll
be listed with a whole bunch of ifs and bats.
New Zealand First would be the spanner in the works
potentially if this coalition government, you know, gets through the
election and continues to govern after next year.
Speaker 2 (01:23):
What is it that they are so apart because I mean,
surely we look at the example of I don't know
any of the power companies or in New Zealand and
we say it's working well right, that it's brought in efficiencies,
it's turning greater amount of money to the government now
that they're listed, and the government still has majority ownership,
So what are they concerned about?
Speaker 3 (01:41):
Yeah, look, I think New Zealand First has always been
of the idea that the state should hold on to
its assets, and you know, it's been it's very wary
of having foreign ownership of our assets. So that's just
the position that it's always taken. I did ask Nichol
will As that today though, like what actually is the
problem of having more more foreign ownership foreign investment, and
(02:05):
she pointed to the fact that Kiwi's like Kiwibank being
Kiwi owned. There's some sort of sentimental aspect around that.
And that's actually part of Kiwibank's value proposition. It attracts
customers that support that concept. And you know, I think
it would be really interesting to see some polling on
on whether New Zealanders do support Kiwibank remaining k We owned,
(02:26):
Like we think we're going to get a better deal
because we'd have to be kiwis owners.
Speaker 2 (02:31):
You know, a great idea, but we'd have to poll
only Kiwi Bank customers because guarantee you that all there
were all these numpty sitting out there going now it's
going to be ke ke We owned banking with Wye Pac.
Speaker 3 (02:40):
Yeah, you know, I think that that's probably true. And
I think also if you say to people, well, you know,
would you rather have kibank key owned and your tax
payer money go into Kiwibank rather than your money go
into hospitals, that's a different equation. Because we all say
we wanted to be you know, government owned. That sounds nice.
But then when we say, well there's an opportunity cost
(03:01):
and there are private investors willing to put their money in.
Were you happy to let them put their money in
and the government's money can go into hospitals? Or do
you want the government's money to go into Kibi Bank
as well and not into hospitals, so it's a it's
a trade off, but I think this will definitely be
a hot election topic. Interestingly, I took to Chris Sipkins
today and he wasn't really opposed to what the government's
(03:24):
doing at the moment, which is just bringing in some
private capital into Kiwibank. His main thing was that the
bank remains New Zealand owned, So you know, the labor
seems okay with having some you know, New Zealand private
investors involved, but provided it stays in New Zealand.
Speaker 2 (03:42):
Just it's just such a such a weird way of
seeing the world, but such as such, it is, yes.
Speaker 3 (03:49):
And actually just I should say that the issue that
the superfund, which previously partly owned QB Bank, the issue
that it had was around the restrictions around what it
can do with the shares. So I think investors they
really want to know that if they want to divest
get rid of their shares, they need to be sure
that there's going to be a buyer of those shares
(04:10):
and they're not going to miss out. So I think
that's going to be the big, big sticking point.
Speaker 2 (04:14):
Yeah, totally. Now have you seen Cash Pattel around the building.
Speaker 3 (04:18):
I haven't, but my colleagues have. There was some frantic
running around the building, some sweaty foreheads.
Speaker 2 (04:28):
Who busted him in the basement car park.
Speaker 3 (04:31):
I think it might have been my colleague Thomas Coglin.
Speaker 2 (04:35):
But you know what, only Thomas would be walking around
knowing what the director of the FBI looks like, don't
you think?
Speaker 3 (04:41):
Honestly he is just a fountain of knowledge. Man, I
wouldn't it would have. It would have slipped right past me.
But you know, I've been hid down doing other things.
But I suspect there would have been a whole fanfare
around him as well. In the building.
Speaker 2 (04:53):
Well, they were hiding him in the building. Actually, no
one was supposed to know that he was visiting Winston
Peters on the seventh floor. Thank you, I appreciate it.
Jaib Cheriny the Herald's Wellington business. Oh yeah, we've got it.
So so to bring you up to speed on that story.
So remember when when we sent a message through to
Winston's man Winston and we were like, what's Cash Batal
doing in Wellington? He was like, is he in Wellington?
(05:15):
Is he, You'll have to speak to the US Embassy,
like at while cash Betel's in the office, is he? Anyway,
So we did go to the US Embassy. This is
what the US Embassy sent us. We have many official
visits to New Zealand and we comment on these at
appropriate moments and when we are in a position to
do so. So thank you that because he said to us,
they've got a statement for you. Oh what a waste
(05:36):
of our time anyway. Bless for more from Heather Duplassy
Allen Drive. Listen live to news talks. It'd be from
four pm weekdays, or follow the podcast on iHeartRadio.
Together do for cel.
Speaker 2 (00:01):
So the government has given the green light to a
partial privatization of Kiwibank. The bank's going to raise up
to half a billion dollars from investors. Our Finance Minister
Nikola Willis told us earlier why we're not raising more
than that?
Speaker 1 (00:12):
Yeah, Look, it's a really good question. Actually, Kiwibank is
in the midst of a digital transformation and their view
is that completing that is actually necessary before they go bigger,
and in terms of the Crown getting the most value
for its stake, that we will get more value in
(00:33):
the future once that transformation has occurred.
Speaker 2 (00:35):
Genative Trainee is The Herald's Wellington Business editor and with
us evening Janey Hi Heaver right, So more to come
and what do you think listed on the share market?
Speaker 3 (00:44):
I think if National and Act had their way then
Kiwibank will be listed on the New Zealand Stock Exchange.
I think there's probably still be some restrictions around that though,
like Nichola Willis suggests that she wants kee We Bank
to be for the Governant to still have a decent
chunk of ownership and for it largely to remain New
(01:04):
Zealand owned so I think if it is listed, it'll
be listed with a whole bunch of ifs and bats.
New Zealand First would be the spanner in the works
potentially if this coalition government, you know, gets through the
election and continues to govern after next year.
Speaker 2 (01:23):
What is it that they are so apart because I mean,
surely we look at the example of I don't know
any of the power companies or in New Zealand and
we say it's working well right, that it's brought in efficiencies,
it's turning greater amount of money to the government now
that they're listed, and the government still has majority ownership,
So what are they concerned about?
Speaker 3 (01:41):
Yeah, look, I think New Zealand First has always been
of the idea that the state should hold on to
its assets, and you know, it's been it's very wary
of having foreign ownership of our assets. So that's just
the position that it's always taken. I did ask Nichol
will As that today though, like what actually is the
problem of having more more foreign ownership foreign investment, and
(02:05):
she pointed to the fact that Kiwi's like Kiwibank being
Kiwi owned. There's some sort of sentimental aspect around that.
And that's actually part of Kiwibank's value proposition. It attracts
customers that support that concept. And you know, I think
it would be really interesting to see some polling on
on whether New Zealanders do support Kiwibank remaining k We owned,
(02:26):
Like we think we're going to get a better deal
because we'd have to be kiwis owners.
Speaker 2 (02:31):
You know, a great idea, but we'd have to poll
only Kiwi Bank customers because guarantee you that all there
were all these numpty sitting out there going now it's
going to be ke ke We owned banking with Wye Pac.
Speaker 3 (02:40):
Yeah, you know, I think that that's probably true. And
I think also if you say to people, well, you know,
would you rather have kibank key owned and your tax
payer money go into Kiwibank rather than your money go
into hospitals, that's a different equation. Because we all say
we wanted to be you know, government owned. That sounds nice.
But then when we say, well there's an opportunity cost
(03:01):
and there are private investors willing to put their money in.
Were you happy to let them put their money in
and the government's money can go into hospitals? Or do
you want the government's money to go into Kibi Bank
as well and not into hospitals, so it's a it's
a trade off, but I think this will definitely be
a hot election topic. Interestingly, I took to Chris Sipkins
today and he wasn't really opposed to what the government's
(03:24):
doing at the moment, which is just bringing in some
private capital into Kiwibank. His main thing was that the
bank remains New Zealand owned, So you know, the labor
seems okay with having some you know, New Zealand private
investors involved, but provided it stays in New Zealand.
Speaker 2 (03:42):
Just it's just such a such a weird way of
seeing the world, but such as such, it is, yes.
Speaker 3 (03:49):
And actually just I should say that the issue that
the superfund, which previously partly owned QB Bank, the issue
that it had was around the restrictions around what it
can do with the shares. So I think investors they
really want to know that if they want to divest
get rid of their shares, they need to be sure
that there's going to be a buyer of those shares
(04:10):
and they're not going to miss out. So I think
that's going to be the big, big sticking point.
Speaker 2 (04:14):
Yeah, totally. Now have you seen Cash Pattel around the building.
Speaker 3 (04:18):
I haven't, but my colleagues have. There was some frantic
running around the building, some sweaty foreheads.
Speaker 2 (04:28):
Who busted him in the basement car park.
Speaker 3 (04:31):
I think it might have been my colleague Thomas Coglin.
Speaker 2 (04:35):
But you know what, only Thomas would be walking around
knowing what the director of the FBI looks like, don't
you think?
Speaker 3 (04:41):
Honestly he is just a fountain of knowledge. Man, I
wouldn't it would have. It would have slipped right past me.
But you know, I've been hid down doing other things.
But I suspect there would have been a whole fanfare
around him as well. In the building.
Speaker 2 (04:53):
Well, they were hiding him in the building. Actually, no
one was supposed to know that he was visiting Winston
Peters on the seventh floor. Thank you, I appreciate it.
Jaib Cheriny the Herald's Wellington business. Oh yeah, we've got it.
So so to bring you up to speed on that story.
So remember when when we sent a message through to
Winston's man Winston and we were like, what's Cash Batal
doing in Wellington? He was like, is he in Wellington?
(05:15):
Is he, You'll have to speak to the US Embassy,
like at while cash Betel's in the office, is he? Anyway,
So we did go to the US Embassy. This is
what the US Embassy sent us. We have many official
visits to New Zealand and we comment on these at
appropriate moments and when we are in a position to
do so. So thank you that because he said to us,
they've got a statement for you. Oh what a waste
(05:36):
of our time anyway. Bless for more from Heather Duplassy
Allen Drive. Listen live to news talks. It'd be from
four pm weekdays, or follow the podcast on iHeartRadio.
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