ANZ OFFLOADS UDC FINANCE BUSINESS FOR $NZ660

ANZ OFFLOADS UDC FINANCE BUSINESS FOR $NZ660
ANZ Bank has agreed to sell UDC, an asset finance business in New Zealand, for $NZ660 million (~$A625 million), marking its second asset sale in as little as two weeks. 

The UDC deal follows the sale last week of ANZ's 20 per cent stake in Shanghai Rural Commercial Bank to COSCO for $1.8 billion.

The Bank says the sale of UDC Finance to HNA Group, a Chinese based conglomerate with global interests in finance, transport and tourism, was a part of an ongoing strategy of "simplifying its business and capital efficiency."

As at 30 September 2016, UDC Finance had a total revenue of $NZ120 million ($~A113 million) and $NZ2.6 billion ($~A2.4 billion) in loans.

"The sale of UDC is consistent with our strategy to simplify the bank and is a good outcome for customers and staff," says ANZ New Zealand chief David Hisco.

"HNA Group is one of the world's largest asset finance and leasing companies, and it intends to preserve UDC's operations including offering continued employment to all staff."

ANZ believes that the sale will result in a net gain of $A100 million and boost the Bank's common equity tier one capital ratio by about 10 basis points.

The sale also includes the transfer of the "Escanda" name and trademark in Australia and New Zealand.

The finalisation of the sale is subject to undisclosed conditions and regulatory approval and is not expected to be wrapped up until late this year.

ANZ shares rose by 18 cents, or 0.6 per cent, earlier in the day to $31.50 before falling slightly to $31.29 at 1.30pm AEST.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Advertisement

Related Stories

Crown to cough up $12.5m towards Bergin Inquiry

Crown to cough up $12.5m towards Bergin Inquiry

Crown Resorts (ASX: CWN) has revealed it will pay $12 million tow...

$65m valuation gives Melbourne's Deliciou a plant-based protein kick for Whole Foods Market roll-out

$65m valuation gives Melbourne's Deliciou a plant-based protein kick for Whole Foods Market roll-out

When Kjetil Hansen appeared on Shark Tank in 2017, his $1.2 milli...

Treasury Wines shrugs off China woes as earnings recover

Treasury Wines shrugs off China woes as earnings recover

Treasury Wines (ASX: TWE) has shrugged off its China woes with a ...

Australia orders 25 million COVID-19 vaccine doses from Moderna

Australia orders 25 million COVID-19 vaccine doses from Moderna

Biotechnology company Moderna (Nasdaq: MRNA) has entered into a n...