Govt. sells 40% shares in Westpac Bank of Tonga [1]
Monday, July 14, 2008 - 22:16. Updated on Wednesday, July 29, 2015 - 11:37.
The Tonga Government has sold its 40 per cent shareholding in Tonga's oldest bank the Westpac Bank of Tonga, giving full ownership to the Westpac Banking Corporation (Westpac) today July 14.
A statement from Westpac said that the Government of Tonga agreed to the sale after deciding to sell its equity in Westpac Bank of Tonga as part of a broader divestiture program.
Hon. Afu'alo Matoto, Minister for Finance and National Planning, Public Enterprise and Information, said the Government of Tonga acknowledged that the banking industry had reached maturity and therefore active participation in one bank was no longer required.
"It is important that Government investment be divested to provide a level playing field for the industry. The Government acknowledges and appreciates the contribution that Westpac has been providing over the years to the banking industry in Tonga and the overall development of the country.
"It wishes Westpac all the best in the future in Tonga and the strong relationship that it has with Westpac over the years is expected to continue; and contribution to the growth of the economy will be maintained," Hon. Afu'alo.
Westpac's General Manager Pacific Banking, Jane Kittel, said Westpac was pleased to increase its investment in Tonga by acquiring the Government's 40 per cent share at a fair market price.
"Westpac remains committed to playing an important role in the continued recovery of the Tonga economy and in rebuilding investor and business confidence in the Kingdom," she said.
Westpac has been in Tonga since 1974.