Heartland Group Holdings says it is still on track with its $620 million deal to buy TSB after an attempt to stall the sale was dismissed by the High Court today.

It says no dates have changed.

However, Kiwi Group Capital says it is still interested in sweeping up TSB’s shares in what it claims is a superior offer.

Kiwi Group Capital chairman David McLean told the NZ Herald it has communicated its offer in TSB and believes Kiwibank is the better partner.   

In the latest move, High Court Justice Andru Isac threw out the case take b by the Taranaki Community Accountability Society against the trustees of TSB shareholder Toi Foundation to stop the sale.

In his judgement he says the society’s claims were "legally and factually weak" in his judgment.

“I am satisfied the interests of justice do not favour the grant of an interim injunction even if there had been jurisdiction to grant one in the terms sought," he says.

Justice Isac says even if he had concluded the society had standing to bring the claim, it has failed to establish a serious question to be tried on the merits of its allegations.

"Standing back and considering the overall interests of justice, I consider the risk of harm that might arise to the [Toi] foundation and its charitable purposes from the grant of interim relief clearly outweighs the claimed harms advanced by the applicant. There is a rational basis for the foundation’s consideration of a potential sale of TSB.

“While it is understandable that a significant proportion of the Taranaki community would prefer that the bank remains wholly owned by the foundation, there is a financial trade-off from continuing ownership.

“These competing and difficult questions are matters the Community Trusts Act and executive Government have given to the trustees to resolve."

The Toi Foundation is scheduled to vote on the proposed Heartland takeover, with the backing of at least 75% of the nine trustees needed before Heartland is notified two days later.

If the notification goes ahead Heartland shareholder will vote on the proposal on September 30 and the sale will take effect in December if all regulatory hurdles are cleared.