NZ Post set to sell 45 per cent of Kiwibank to ACC and the Super Fund

Troubled NZ Post plans to sell 45 per cent of Kiwibank to ACC and the Super Fund, it was announced this morning.

The purchase proposal will ensure the bank remains wholly owned by the Government, says Finance Minister Bill English and State Owned Enterprises Minister Todd McClay.

Political Editor Corin Dann has the latest on the sale from Parliament. Source: 1 NEWS

"To ensure this occurs, the proposal includes a right of first refusal for the Government over any future sale of shares – which we would exercise," Mr English said. 

Mr McClay says that the purchase proposal values Kiwibank, which is a subsidiary of NZ Post, at $1.1 billion. The final decision will be made by the end of the Financial Year.

NZ Post office Source: 1 NEWS

ONE News revealed last week that around 500 NZ Post management and specialist jobs will go in Auckland, Christchurch and the Wellington head office in the next three months.

Thirteen-hundred jobs have already been cut by NZ Post in the last three years because people aren't posting letters anymore - 60 million fewer each year - which is costing NZ Post $30 million a year, according to Mr English.

Selling assets and cashflow gave NZ Post a $110 million half-year profit to December, and that gave the Government a $5 million dividend.