KINA SECURITIES LIMITED — M&A Activity 2020

May 13, 2020

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14 May 2020

KINA ANNOUNCES SHORT-FORM AMALGAMATION

• Kina Bank Limited (“KBL) and two interceding holding companies, Kina Ventures Limited (“KVL”) and Kina Properties Limited (“KPL”) to be amalgamated into Kina Securities Limited

• The amalgamation simplifies the Group’s operating and capital structure

• No impact on regulatory compliance including banking license

• Kina Bank’s capital adequacy ratio post amalgamation of 15% remains compliant with BPNG’s capital adequacy requirements in accordance with Prudential Standard 1/2003 - Capital Adequacy

• No impact on the valuation of goodwill carried on the Company’s balance sheet

Kina Securities Limited ( ASX:KSL | PNGX:KSL ) ( Kina or the Company ) advises that the Boards of the Company, KBL, KVL and KPL have approved a simplification of the Group’s legal structure to be achieved by way of a Short-Form Amalgamation ( Amalgamation ), in accordance with section 235(1) of the PNG Companies Act 1997.

The Amalgamation is subject to normal regulatory approvals from the Bank of Papua New Guinea ( BPNG ) and the PNG Investment Promotion Authority ( IPA ), and it is anticipated that the Amalgamation will be effective by 30 June 2020 ( Completion ).

-ENDS-

For further information:

Greg Pawson Chetan Chopra Chief Executive Officer and Managing Director Chief Financial Officer and Company Secretary Email: greg.pawson@kinabank.com.pg Email:Chetan.chopra@kinabank.com.pg

This Announcement was authorised for lodgement by Kina’s Board of Directors.

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