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[1] (~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.
