ANZ Sells NZ Asset Financing Business
The sale follows a strategic review of UDC Finance previously announced by ANZ Bank New Zealand and is in line with ANZ’s strategy to simplify its business.
ANZ Bank has agreed to sell its New Zealand-focused asset finance business UDC Finance to Japanese firm Shinsei Bank for NZ$762 million ($479 million), it announced on Monday.
The deal, which is expected to be completed in the second half of 2020, is expected to strengthen ANZ's balance sheet as it will release NZ$2 billion in funding provided by ANZ to UDC.
Shinsei said it intends to preserve UDC’s operations, retain UDC employees and provide long term capital to maintain and grow customer lending in New Zealand. «The sale will also mean UDC Finance will continue to operate as an independent finance company and enhance competition in the asset finance market,» ANZ Bank New Zealand CEO Antonia Watson said about the deal.
Failed Sale
ANZ has for several years tried to sell UDC, and in early 2018 nixed a NZ$660 million ($461 million) deal with Chinese conglomerate HNA for the business, after the New Zealand government increased scrutiny on foreign investment coming into the country.
The sale price represents a price-to-book ratio of 1.2x net tangible assets of NZ$637 million as at 31 March 2020, according to the announcement.
