Heartland Group shareholders approve $620m TSB merger

Heartland Group shareholders have overwhelmingly approved a $620 million acquisition of TSB, which will lead to a merger between TSB and Heartland Bank to form TSB Heartland Bank. At a special meeting, 94.8% of the votes cast were in favor of the transaction.

Under the terms of the proposal, Heartland will acquire all TSB shares from the Toi Foundation. As part of the consideration, shareholders approved the issuance of 200 million Heartland shares to the Toi Foundation at $1.25 each.

Heartland Group CEO Andrew Dixson stated the vote is a “strong endorsement from our shareholders of the strategic rationale for this transaction and the long-term value it is expected to create.” He noted the merger aims to create a larger, more competitive New Zealand bank with increased capacity for growth.

The company emphasized that Taranaki will remain a key operational hub, maintaining its local branch network and customer-facing roles. The transaction remains subject to regulatory approval and the satisfaction of remaining conditions. This follows a recent announcement by the Reserve Bank requesting an independent report into TSB regarding its capital and liquidity ratios, with findings expected in November.