The partial sale of Government-owned Kiwibank to two state-owned entities is a shrewd deal which could only be thought of in Wellington, one which caught everyone by surprise.
Kiwibank is owned by New Zealand Post and contributes about two-thirds of the profit after tax of the postal outlet.
Prime Minister John Key successfully won an election promising the partial sale of state-owned energy companies, Meridian Energy, Genesis and Mighty River Power.
The Government also reduced its stake in Air New Zealand but kept a controlling share in all these companies.
The sales were vehemently opposed by the Opposition parties, but Mr Key won the election and the sales proceeded.
Since the listing of those companies on the NZX, profits and performance have improved markedly and only the most cynical will not be acknowledging the wisdom of the sales.
In a previously unguarded moment, Finance Minister Bill English was heard to say he wanted to sell Kiwibank, presumably because like many others, he believes governments have no right to own banks.
Mr Key firmly stepped on Mr English and now both men say Kiwibank will not be sold under their watch.
Last week, the Green Party said it would pump $100million into Kiwibank to let it compete on an even keel with the Australian-owned banks operating in this country.
The $100million is such a small amount of money in banking terms, it would have made no difference at all.
Step in NZ Post chairman Sir Michael Cullen, a former Labour finance minister who eventually gave in to Progressive Party leader Jim Anderton and allowed the establishment of Kiwibank.
Sir Michael knows the parlous state of NZ Post first-hand, because he is watching the rapid decline of posted items hurt the bottom line.
He approached the Government with a suggestion which would allow NZ Post to receive some much needed cash to repay debt and help expand its more profitable lines of parcel deliveries and overseas services.
In a stroke of genius, Sir Michael suggested ACC and the New Zealand Superannuation Fund - a fund commonly called the Cullen Fund because Sir Michael established it - each buy a share in Kiwibank.
If the deal goes ahead, as it surely will, ACC will take a 20% share and the Cullen Fund will take 25%.
The deal is worth about $495million, valuing Kiwibank at $1.1billion.
Not only does NZ Post get some much needed capital investment, but Mr English gets to clip the ticket along the way to the tune of between $300million and $350million - a helpful amount when Budget 2016 is expected to contain many new spending promises because it is leading into an election year.
In a simple stroke, two finance ministers - one former and one current - get what they want without either having to face voter wrath for selling a state asset.
Labour was left congratulating Sir Michael for his part in the process while reaffirming its support for keeping the bank in New Zealand ownership.
The Government remains hands-off in running of Kiwibank, as it should be, because the Companies Act and Reserve Bank requirements state the bank must act independently from its NZ Post owner in terms of activities.
The Government cannot direct NZ Post, nor through NZ Post can it direct Kiwibank.
The agreement says ACC and the super fund must hold the shares in Kiwibank for five years before they can sell.
And if they do sell, the government of the day has first refusal.
ACC and the super fund will probably use their considerable cash to strengthen Kiwibank, without government intervention.
If either National or Labour wins the next election, Kiwibank is safe until at least 2019. By 2020, circumstances and sentiment may have changed.
But, for now, just about everyone is getting what they want.
