- ANZ Bank (ANZ) has sold its New Zealand asset finance business, UDC Finance, to Japanese financial institution Shinsei Bank for NZ$762 million (approximately A$705 million)
- The company said the sale provides about A$439 million of level two capital at settlement
- It will also release more than NZ$2 billion (approximately A$1.85 billion) of funding provided by ANZ New Zealand, further strengthening its balance sheet
- ANZ New Zealand CEO Antonia Watson said the sale was in line with the company’s strategy and Shinsei’s purchase of UDC was a vote of confidence in the New Zealand economy as it rebounds from the COVID-19 pandemic-induced downturn
- ANZ shares are trading just over a per cent lower today, selling for $17.86 each
Australia New Zealand Bank (ANZ) has sold its NZ asset finance business, UDC Finance, to Japanese financial institution Shinsei Bank for NZ$762 million (approximately A$705 million).
The company said the sale follows a previously-announced strategic review of UDC Finance and is in line with ANZ’s strategy to simplify its business.
The sale provides about A$439 million of level two capital at settlement and will also release more than NZ$2 billion (approximately AUD$1.85 billion) of funding provided by ANZ New Zealand, further strengthening its balance sheet.
ANZ New Zealand CEO Antonia Watson said Shinsei’s purchase of UDC was a significant vote of confidence in the New Zealand economy as it rebounds from the economic downturn created by the COVID-19 pandemic.
“With a strong outlook for infrastructure and agriculture projects as the New Zealand economy rebuilds post-COVID-19, there is a significant role for UDC Finance to play. As such, it needs an owner that can invest in and grow the business,” Antonia said.
She also said the purchaser will preserve UDC’s operations and retain its employees. The sale means UDC Finance can continue to operate as an independent finance company.
“In the Covid-19 ‘New Normal’, we are confident that UDC, as part of Shinsei Bank Group, will continue to grow and contribute to the development of the New Zealand economy and help people and businesses in New Zealand with their financial needs.”
Shinsei Bank CEO, Hideyuki Kudo.
ANZ shares are trading just over a per cent lower today, selling for $17.86 each at 1:12 pm AEST.