ANZ Bank (ASX:ANZ) will sell its retail, commercial and small-medium sized enterprise (SME) banking businesses in Papua New Guinea to Kina Bank.
Australia’s third largest bank says the decision to sell the businesses is so it can focus solely on Institutional and large corporate banking in the market.
The purchase price of A$10m reflects the goodwill of the ANZ PNG businesses.
The acquisition will be fully funded from existing cash and capital reserves
Kina Bank is a wholly owned subsidiary of Kina Securities, a PNG company which is listed on the Australian and Port Moresby exchanges.
ANZ Managing Director, Graham Turley says the bank remains committed to running a world-class Institutional and Large Corporate banking business in PNG.
Shares in ANZ (ASX:ANZ) closed closed 2.87 per cent higher to $28.65 on Friday