Why is Heartland’s proposal the preferred option?
The Heartland proposal understood TSB’s strong community focus and the potential merger demonstrated how we could bring the best of both banks together to form a New Zealand challenger bank with scale and a strong suite of service and products. We’re confident Heartland understands TSB’s strengths and benefits and will be able to continue to maximise those.
What percentage of TSB shares is Toi Foundation proposing to sell?
We are proposing to sell 100% of the ordinary shares in TSB to Heartland Group, the parent company of the merged bank, for an aggregate consideration of $620 million, which will be comprised of debt, equity and cash. Toi Foundation will take an approximate 17.5% shareholding in Heartland Group.
How was the proposal assessed?
We have a deep commitment to making prudent strategic choices about our investments. To assess this offer, and to oversee the process, we sought extensive professional advice, including independent investment and legal advice, independent valuations and economic and financial advice that helped us weigh up the opportunities against our strategic philanthropic and investment objectives, our commitments under our trust deed (including the community impact), and the strategic goals of TSB.
Is the proposal conditional on regulatory or shareholder approvals?
The proposal is subject to approval by the Reserve Bank of New Zealand (RBNZ) and (if needed) the Financial Markets Authority (FMA). Toi Foundation will consult with the Taranaki community before it makes any final decision about whether to proceed, and Heartland also needs to seek shareholder approval.
What will the proposed merger mean for TSB customers?
If the proposal proceeds, there would be no changes to the range of TSB products and services. As the merger takes effect, the larger scale of the new Bank would provide more opportunities for customers to access a wider range of specialised products, reflecting the complementary strengths of TSB and Heartland.
How will the merger affect TSB’s headquarters in New Plymouth and local employment?
If the proposal proceeds, the new merged bank would continue to be a regional champion. Specialist teams would be retained in Taranaki to support future growth. TSB Heartland Bank would continue to have a close association with the Taranaki region, retaining New Plymouth operation and contact centres, and maintaining local branch network and customer-facing roles.
How will this sale strengthen Toi Foundation’s ability to support the Taranaki community?
We should be able to take steps towards diversifying and acceleration the growth rate of our investment portfolio and realise better returns which will enable us to grow our community funding each year.
What types of projects will benefit from the increased philanthropic funding?
We will continue to make funding decisions as we currently do, in line with our strategy of creating a thriving, inclusive and equitable Taranaki.
Will there be any community input into how the proceeds are used?
We always welcome input, suggestions and formal requests for funding for initiatives that align with our funding strategy and criteria.
What does the community consultation process involve, and how long will it run?
Under the terms of its founding Trust Deed, Toi Foundation is required to have regard to likely effects any potential sale of TSB shares would have on the affected community and consult with the community on any potential sale.
Toi Foundation’s focus is on ensuring the Taranaki community understands the offer, so that the community can provide informed written feedback and make it easy for them to share their views and express any concerns they might have.
Toi Foundation has provided a detailed information booklet and fact sheet, and will hold opportunities for the public to give written feedback. More information is available HERE
Consultation is open from Wednesday 3rd June 2026 until 5pm, Tuesday 30th June 2026.
How will feedback from the public be used in the final decision-making process?
All feedback from Taranaki residents will be considered by the Toi Foundation Trustees as part of its final decision-making process as to whether to proceed with the sale.
Will the results of the consultation be made public?
Toi Foundation’s Trustees will provide a summary of feedback when they announce the final decision.