The proposed "Heartland Bank" is a step closer to getting a banking licence and listing on the NZX, following the release yesterday of a positive endorsement from investment banking firms.
The bank will be created through the merger of MARAC, CBS Canterbury and Southern Cross Building Society.
The independent report, co-authored by investment banking firms Cameron Partners and Northington Partners, would be mailed to voting shareholders and investors in the merging entities next week as part of an information pack that also included meeting and other documents.
Craigs Investment Partners broker Chris Timms said the listing would be welcomed both by the NZX and investors looking for exposure to the banking sector.
"There will be a demand for this in the market."
The new bank still had the major hurdle of Reserve Bank approval before it became a registered bank, and that could be a slow process.
Among the requirements would be receiving a Standard and Poor's credit rating and meeting liquidity targets, he said.
Bruce Irvine, chairman of Building Society Holdings Ltd, the merged entities, said the independent report was comprehensive and detailed and its findings provided valuable validation of the decision to pursue the merger.
Each of the merging entities had undertaken extensive due diligence and evaluation and had concluded the merger was compelling for all parties.
Meetings to vote on the proposal would start on November 22 with the merger expected to take effect on January 7.
