Heartland bank a big tick closer

Shareholders of Pyne Gould have approved the proposal that will turn their finance company, Marac Finance, into 71% of a new, NZX-listed "heartland" bank.

The resolution, which required approval by at least 50% of the votes cast by PGC shareholders, was supported by 99.86% of those who voted and follows 'yes' votes already from the members of the Canterbury Building Society and Southern Cross Building Society.

CBS and SCBS will make up 14.5% apiece of the new bank, which is planned to come into existence on from Jan. 1 before listing in February, and has yet to be named.

"All shareholders of the merging parties have now given their support to the proposal to create a New Zealand listed banking(1) and financial services group through merging MARAC, CBS and SCBS," said PGC chairman Bruce Irvine. "This is a significant endorsement of the strategic direction we have taken and brings us one step closer to it becoming a reality."