Toi Foundation, the 100% owner of TSB, will soon be seeking feedback from Taranaki residents on a proposal relating to TSB.
From Wednesday 3rd June, Taranaki residents who live within Toi Foundation’s legislated boundary will be invited to share their views on a conditional proposal for Toi Foundation to sell its 100% shareholding in TSB to Heartland Group, enabling a potential merger of TSB with Heartland Bank.
No decisions have been made. Community feedback will play an important role in informing Toi Foundation Trustees before any final decision is taken.
Toi Foundation has entered into a conditional Merger Implementation Agreement with Heartland Group to give effect to the proposed merger, which is conditional on this consultation and other regulatory and shareholder approvals.
- Toi Foundation would sell its 100% shareholding in TSB to enable TSB to merge with Heartland Bank to form TSB Heartland Bank, a larger New Zealand challenger bank.
- Toi Foundation would become a shareholder in Heartland Group, with a 17.5% shareholding.
- The combined bank would maintain a strong commitment to the Taranaki region, with complementary products and improved long-term performance outlook.
The proposal aligns with Toi Foundation’s long-term strategy to diversify its investment portfolio and grow philanthropic giving in Taranaki.
Toi Foundation believes that, if it proceeds, this proposal would help it deliver on its purpose of building a thriving, inclusive and equitable Taranaki, and realise other benefits, including:
- Enabling Toi Foundation to grow the amount of funding available for long term, intergenerational community support in the Taranaki region.
- Enabling TSB Heartland Bank to be a leading challenger bank that has greater scale to compete against larger banks, is commercially strong, customer focused and backed by specialist products.
Toi Foundation respects the views of its community and is particularly keen to understand any perspectives it may not have considered. We look forward to hearing your views and feedback on the proposal.
Please note: All written feedback responses are confidential to Toi Foundation. Toi Foundation will collate and report on feedback received as part of the wider consultation process it is undertaking. A summary of feedback will be provided at the time of the Toi Foundation Board’s decision. Toi Foundation reserves the right to receive feedback after the deadline.