Heartland Secures Toi Foundation Backing for $620m TSB Bank Merger
Heartland Group Holdings Ltd., a New Zealand challenger banking group listed on the NZX and ASX, has secured backing from the Toi Foundation for its proposed $620 million merger with TSB Bank Limited. The transaction will create a stronger nationwide presence while preserving local branch networks and regional branding.
The sale of all TSB Bank shares to Heartland was approved by Toi Foundation trustees, who chose Heartland's proposal over alternative market interest due to superior value and better alignment with community priorities such as job and branch retention. The deal will allow the Foundation to diversify its investment portfolio and potentially increase annual community grant distributions from about $30 million to roughly $50 million.
Heartland plans to lodge its application with the Reserve Bank of New Zealand and issue meeting materials to shareholders ahead of a special meeting scheduled for 30 September 2026. The merger, targeted for completion in December 2026, is expected to strengthen Heartland's position as a New Zealand challenger bank.