New Zealand Post is planning to sell almost half of Kiwibank to other government agencies.

The deal is expected to be confirmed later this financial year and values Kiwibank at $1.1b.

It would see the New Zealand Super Fund owning 25% of the company.

The Accident Compensation Corporation would own 20%.

Kiwibank is a subsidiary of New Zealand Post, and the deal would mean it stays within state ownership.

The government would have a right of first refusal over any further sale of shares.