TSB owner backs Heartland's $620m takeover deal

By the Editorial Team · Thursday, August 27, 2026

The Toi Foundation trustees have approved the $620 million sale of TSB Bank to Heartland Group Holdings, moving the deal closer to completion pending regulatory and shareholder approval. This sale will maintain TSB’s regional presence in Taranaki, increase annual community grants, and create a stronger combined bank with local board representation and job retention.

The trustees of the Toi Foundation have confirmed their support for the planned $620 million sale of TSB Bank to Heartland Group Holdings. The decision, reached on August 27, marks a key step toward completing the transaction, which remains subject to regulatory clearance and approval by Heartland shareholders. The deal is expected to close in December.

The Toi Foundation, which owns TSB, conducted a thorough review process in which it invited offers to diversify its investments. Chairperson Chris Ussher stated that, after evaluating proposals—including one from Kiwi Group Capital, the owner of Kiwibank—the trustees concluded that Heartland's bid represented the best overall option. Ussher cited considerations such as value, job retention, branch preservation, and maintaining TSB’s presence in the Taranaki region as factors in the decision.

The proposed acquisition includes a plan for the Toi Foundation to reinvest in the merged entity, retaining a 17.5% ownership stake. Additionally, representatives from Toi and TSB will have board-level involvement in the combined organization. The foundation anticipates that grants distributed in Taranaki, currently totaling approximately $30 million annually, will increase to around $50 million following the sale.

The trustees’ decision followed a public consultation process that garnered 1,267 submissions from Taranaki residents, a requirement under Toi’s trust deed. Earlier in the week, the High Court dismissed an application from a community group seeking to halt the sale via an interim injunction. The judge ruled that the group’s claim—that Toi had insufficiently consulted the public—lacked legal merit.

Heartland’s chief executive, Andrew Dixson, welcomed the trustees’ vote as a significant milestone ahead of the shareholder vote scheduled for September 30. Dixson emphasized Heartland’s commitment to preserving TSB’s connection with Taranaki, pledging to maintain the region’s role as an operational hub. He affirmed that local branch networks and customer-facing positions would be retained and that the merged bank would incorporate both the Heartland and TSB brands. Dixson described the combined institution, to operate under the name TSB Heartland Bank, as a stronger challenger bank focused on serving regional New Zealand.

Meanwhile, Kiwi Group Capital chairman David McLean reiterated his organization’s interest in fostering a robust New Zealand-owned banking alternative. Although Kiwi Group Capital’s offer for TSB was not accepted, McLean stated the group would continue exploring opportunities that align with this objective.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.