By Valerina Changarathil & Joyce Moullakis
Westpac’s institutional investors are supporting the banking giant’s decision to avoid a costly split with its legacy New Zealand business, saying the whole exercise had “achieved its purpose” in giving Kiwi regulators something to think about.
“Keeping it all within the group is the best thing to do at this point in time given the additional capital they would have needed to split or float it,” Wilson Asset Management portfolio manager Matthew Haupt said.
“It’s a positive move to keep it all in.
“I was not too worried about the review because I never thought a split was going to happen.
“It was more of a warning to NZ regulators.
“The whole exercise has achieved its purpose.
“NZ regulators now have to think about the impact of what some of their tough changes can mean for their economy.”
Listed investment company WAM’s Leaders portfolio has Westpac among its top-20 shareholdings.
Read more in The Australian.