ANZ to sell UDC Finance for NZ$762m

Maria Nikolova

The sale of UDC Finance to Shinsei Bank follows a strategic review of ANZ’s asset finance business in New Zealand.

ANZ today announces it has agreed to sell its asset finance business in New Zealand, UDC Finance, for NZ$762 million to Shinsei Bank Limited.

The deal 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. The purchase price represents a price-to-book ratio of 1.2x net tangible assets of NZ$637 million as at the end of March 2020. The sale provides ~AUD$439 million (~10bps) of Level 2 Group CET1 capital at settlement. The sale will also release more than NZ$2 billion of funding provided by ANZ New Zealand, further strengthening its balance sheet position.

Shinsei Bank Group is a diversified financial group with both banking and non-banking business divisions. Shinsei Bank Group operates both asset financing and vehicle and consumer lending businesses similar to those of UDC within Japan and offshore.

ANZ Bank New Zealand CEO Antonia Watson said:

“Shinsei Bank 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”.

Shinsei Bank CEO Hideyuki Kudo commented:

“Based on UDC’s long successful history, solid business base and efficient sales structure, UDC will be a major asset for the Shinsei Bank Group”.

The UDC sale is subject to regulatory approval and completion is expected in the second half of 2020.

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