The Australia and New Zealand Banking Group Limited (ANZ) announced the sale of UDC Finance, its asset finance business in New Zealand, for NZ$762 million to Shinsei Bank Limited.
The sale is inline with ANZ’s strategy to simplify its business and follows a review of UDC Finance. The purchase price represents a price-to-book ratio of 1.2x net tangible assets of NZ$637 million as at 31 March 2020. The sale provides ~AUD$439 million (~10bps) of Level 2 Group CET1 capital at settlement. The sale will also release over NZ$2 billion of funding provided by ANZ New Zealand, further strengthening its balance sheet position.
Shinsei Bank has banking and non-banking business divisions making up a diversified financial group. The company operates in asset financing and vehicle and consumer lending businesses such as those of UDC within Japan and offshore.
ANZ Bank New Zealand CEO Antonia Watson commented:
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 stated:
I am very excited that UDC will become a part of the Shinsei Bank Group, in line with our non-organic growth strategy in this business area.
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 completion of the UDC sale is expected for the second half of 2020 and is subject to regulatory approval.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.