The deadline for community feedback on the proposed TSB-Heartland takeover closed at 5pm on Tuesday, with Toi Foundation trustees now set to review submissions over the coming fortnight.
The foundation sought public input on selling its entire stake in TSB to Heartland Group Holdings in a deal valued at $620 million. Under the proposal announced on 2 June, the foundation would receive a 17.5% stake in the merged company, which would operate as TSB Heartland Bank.
Glen West, the foundation's general manager for business operations, said submissions reflected diverse views and thanked the community for participating. The foundation's 10 trustees will analyse recurring themes from the feedback and may commission further advice before making a decision. The sale requires approval by at least three quarters of Toi Foundation's trustees.
TSB Chairman Mark Darrow backs the proposal, saying the board views it as being in the bank's best interests. "The Board supports the proposal as being in the best interests of the Bank, recognising the inherent disadvantages smaller regional banks face in competing at scale, investing in technology, and responding to increasing regulatory requirements," he said.
"If the proposal proceeds, it would accelerate the future pathway for TSB through greater scale and availability of growth capital, while preserving the customer service ethos that TSB is famous for," he said.
The feedback period comes as TSB reported a net profit of $45.465 million for the March year, up $4.3 million or 10% on the previous year. The bank distributed dividends of $11.5 million to Toi Foundation Holdings.