The PNG competition regulator has denied Kina Banks' proposed acquisition of Westpac's ((WBC)) stake in Westpac PNG.

Regardless, Morgans still believes Kina Securities is in a good position to acquire Westpac customers organically and acquisition funding risks overhanging the stock have now been removed.

The broker reminds the market that Kina Securities has regulatory approval to acquire Westpac's Fiji operations, although undertaking a separate sale process for that asset will require Westpac's approval. Both are now considering the implications of the regulator's decision.

Add rating retained. Target is reduced to $1.31 from $1.57.

Sector: Diversified Financials.

Target price is $1.31.Current Price is $0.85. Difference: $0.46 - (brackets indicate current price is over target). If KSL meets the Morgans target it will return approximately 35% (excluding dividends, fees and charges - negative figures indicate an expected loss).

© 2021 Acquisdata Pty Ltd., source FN Arena