Westpac drops plans to sell Pacific businesses, may write back losses (updated)

Kina Securities

22/09/2021 24:21

(Recasts, adds background, impact on Westpac)
    Sept 22 (Reuters) - Westpac  WBC.AX  said on Wednesday it
was scrapping the sale of its Pacific businesses to Kina
Securities  KSL.AX  after the deal was blocked by Papua New
Guinea's competition regulator, a move that could lead the
company to write back losses. 
    The decision was mutual, the companies said, as PNG's
Independent Consumer and Competition Commission (ICCC) had
denied authorisation last week on concerns that the deal would
lessen competition in the country.  urn:newsml:reuters.com:*:nL4N2QF3VM
    Westpac, Australia's second largest lender, had announced
its intention to sell the businesses in Fiji and Papua New
Guinea for up to A$420 million ($303.79 million) in December
2020 in an effort to focus on core banking operations in
Australia and New Zealand.  urn:newsml:reuters.com:*:nL1N2IM0JN
    The company said it would take the business off the market
for at least fiscal 2021 and may need to write back a loss of
A$121 million it had recognised with its first-half results. 
    Further details will be given before the announcement of its
Nov. 1 results, it added. Westpac had anticipated a total loss
of A$230 million from the deal. 
    "Westpac will continue to operate these businesses and
support its Pacific customers while assessing alternate exit
options," the lender said in a statement. 
    Kina said with expected revenue from the acquisition not
occurring, its 2021 results will now be in line with 2020.
 

($1 = 1.3826 Australian dollars)

 (Reporting by Arundhati Dutta in Bengaluru; Editing by Anil
D'Silva)
 ((Arundhati.Dutta@thomsonreuters.com;))