Westpac completes $91m sale of overseas operations

Westpac Group has announced it has sold its banking operations in the Cook Islands, Samoa and Tonga to the Bank of South Pacific (BSP).

The $91 million transaction was originally announced to the market in January, and Westpac said the deal will not have a material impact on its financial position.

The group said the proposed sale of Westpac’s Vanuatu operations will not proceed at this time.

“Given the impact of Cyclone Pam in Vanuatu, the Reserve Bank of Vanuatu decided that now is not the time for a change of operations in the country’s banking sector,” Westpac said in a statement.

“Westpac will continue to support Vanuatu through its recovery process, and it will be business as usual for our customers and employees.”

Furthermore, Westpac said its proposed sale of its operations in the Solomon Islands will not proceed at this time, as the group and BSP are still in talks with the Central Bank of Solomon Islands in order to obtain all necessary approvals.

Westpac will retain its operations in Fiji and Papua New Guinea.

The group’s divestment of offshore operations comes after NAB announced last week that it was investigating a demerger and initial public offering of its UK subsidiary, Clydesdale Bank.

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