Heartland to purchase Challenger Bank in Australia

Heartland Group Holdings Limited (Heartland) (NZX/ASX: HGH) has announced a conditional purchase agreement for the acquisition of Challenger Bank Limited from Challenger Limited (ASX: CGF).

Challenger Bank is an authorised deposit-taking institution (ADI) based in Melbourne, Australia, offering customers a range of savings and lending products.

The total consideration payable by Heartland is expected to be approximately A$36 million and is intended to be covered by existing resources.

The acquisition is subject to obtaining the requisite regulatory approvals.

Heartland is also seeking consent from the Reserve Bank of New Zealand and the Financial Sector (Shareholdings) Act.

This acquisition is part of Heartland's strategic objective for expansion in Australia, and is expected to create a digital bank which is profitable, with the potential to provide access to a deep and efficient pool of funding to support ongoing growth.