ANZ OFFLOADS UDC FINANCE BUSINESS FOR $NZ660

Written on the 11 January 2017 by Lin Evlin

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.

Author: Lin Evlin Connect via: Twitter LinkedIn

Latest News

DOMINO'S PIZZA EMPLOYEES OFFERED A SLICE OF THE PIE

DOMINO'S Pizza (ASX: DMP) has launched an employee share acquisition plan which will give its 26,000 staff the...

WOOLWORTHS CLAIMS LEGAL VICTORY IN STOUSH WITH LOWE'S

SUPERMARKET giant Woolworths (ASX: WOW) has been given the go-ahead to sell its Masters property assets after winn...

PRICELINE STORE ROLLOUT BOOSTS API'S FULL YEAR PROFIT FORECAST

Australian Pharmaceutical Industries (ASX: API) has booked a rise in half year net profit of $29.1 million on the bac...

CITY DWELLERS SETTING EYES ON REDCLIFFE AS PROPERTY SEACHANGE BECKONS

IT MAY be cool by the sea at Redcliffe, however strong sales at Kyko Group's Mon Komo development prove that t...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter