High Court rejects injunction bid, leaving trustees to vote on sale this week
A High Court bid to block the proposed sale of TSB Bank to Heartland Group Holdings has failed, clearing the way for Toi Foundation trustees to vote on the $620 million deal this week — while Kiwibank’s parent company has again signalled interest in the bank, according to interest.co.nz.
Injunction bid dismissed as "legally and factually weak"
Justice Andru Isac dismissed an interim injunction application brought by the Taranaki Community Accountability Society Incorporated (TCAS), which had sought to stop Toi Foundation trustees voting on the sale. The judge found the group's claims fell short on the merits, saying "as the evidence currently stands I consider its claims are legally and factually weak. In some important respects I consider they are untenable."
Isac also weighed the competing interests at stake, noting "there is a rational basis for the foundation's consideration of a potential sale of TSB," while acknowledging community sentiment. Evidence before the court included a petition backed by around 7,000 signatures and a public meeting where the vast majority of attendees opposed the sale, citing concerns over loss of local control, identity and jobs.
Toi Foundation general manager Glen West welcomed the ruling, saying the foundation's focus has been on ensuring the community submissions process is conducted in a fair and appropriate way. Trustees, who need support from at least 75% of the nine-member board to proceed, are scheduled to vote on Wednesday, 26 August, with Heartland to be notified of the outcome by 28 August.
Kiwibank renews interest as deal timeline holds
David McLean, chairman of Kiwibank's parent company Kiwi Group Capital, used the ruling to restate his own interest in a tie-up with TSB, saying: "We've noted our interest."
The foundation, for its part, indicated no change of direction, with West saying only that trustees were continuing to review community submissions.
Heartland Group Holdings confirmed in a share market announcement that its own special shareholder meeting, set for 30 September, remains subject to trustee approval, adding there are "no changes to the timeline" for completing the deal, which it expects by year's end.
A $15bn challenger bank in the making
The outcome removes a near-term legal obstacle to one of the country's larger bank ownership shake-ups. If the deal proceeds, Heartland's New Zealand asset base would grow by around 170%, with TSB and Heartland Bank merging into a combined entity.
Heartland's most recent FY2026 results, reported days before the ruling, reaffirmed the combined bank — to be called TSB Heartland Bank — would hold around $15 billion in New Zealand assets. That would position it as a larger, regionally focused challenger to the major banks as the merger nears its final approval steps, with potential flow-on effects for regional lending relationships and competition in the broker channel.
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