Heartland seals $127m deal
Heartland Bank has completed its $127.3 million acquisition of Challenger Bank, making it the first New Zealand-registered bank to acquire an Australian authorised deposit-taking (ADI) institution.
Jeff Greenslade, pictured, chief executive officer of Heartland Group Holdings Limited, says: “Completing the acquisition of Challenger Bank is a critical step in Heartland’s strategy for achieving its long-term growth ambitions and expansion in the Australian market, where we are already well-established.”
Challenger Bank began trading as Heartland Bank (Australia) – a digital specialist bank – on May 1.
A statement to the NZX says the total consideration paid for the acquisition of Challenger Bank was A$115.7m (NZ$127.3m).
The sum comprised the total purchase price of A$46.4m and an additional payment of A$69.3m, reflecting the increased capital held by Challenger following its pre-completion purchase of A$574.3m of reverse mortgages from Heartland Australia.
“Drawing on Heartland’s expertise in New Zealand, and its successful track record in Australia, Heartland Bank (Australia) will focus on providing Australians with specialist banking products … through digital channels,” says Heartland.
Heartland Bank (Australia) will provide reverse mortgages and livestock finance, and expansion will be enabled through access to retail deposits.
“Leveraging retail deposit funding and Heartland’s New Zealand product and distribution expertise, Heartland Bank (Australia) may pursue future opportunities to expand into new product segments, such as motor finance and asset finance,” the company adds.
“Heartland has a history of success with these products in New Zealand and considers these sectors to be underserviced by larger banks in Australia.”
Michelle Winzer has been appointed as chief executive officer of Heartland Bank (Australia) and will take up the role from July 22, 2024.
In the meantime, Chris Flood is filling the position on an acting basis and will return to being deputy chief executive officer later in 2024 after a comprehensive handover to Winzer.
