PNG gets local bank with Maybank takeover

Papua New Guinea will get a new locally owned bank as Kina Group buys Maybank PNG from its Malaysian owner. The acquisition of Maybank PNG will see Kina Group become PNG's fourth-largest bank, with combined post-takeover assets of K673 million (A$313 million).

Maybank established its PNG subsidiary in 1994.

The Kina Group has K4.7 billion (A$2.2 billion) in funds under management, in addition to being a finance company and mortgage lender.

The Port Moresby financier is working towards an initial public offer and a listing on the Australian Stock Exchange in June, which includes a A$120 million raising.

The acquisition allows Kina to access to Maybank PNG's client base and the growing demand for electronic banking services.

Kina Group chief executive officer Syd Yates said the acquisition would give both Maybank PNG and Kina Group's customers access to a broader range of banking and financial services products from under the one roof.

"Kina Group already services the financial and investment needs of our 8,000 lending clients, 3000 stockbroking clients and 150,000 fund administration clients, as well as acting as a licensed investment manager," Yates said.

He said a major benefit for Kina Group from holding a full banking licence would be the lower cost of wholesale funding.

Maybank group president and CEO, Datuk Abdul Farid Alias, said the sale followed one of his group's regular strategic reviews.

The Maybank PNG takeover is expected to be completed in July 2015.