Australia and New Zealand Banking Group (ANZ) has completed the sale of its New Zealand asset finance business UDC Finance to Shinsei Bank.
ANZ New Zealand has completed a strategic review prior to the completion of the sale.
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The move is in line with the group’s strategy to further simplify its business.
The bank said that the transaction provides approximately 10bps of Level 2 Common Equity Tier (CET) 1 capital, which will boost ANZ New Zealand’s balance sheet.
ANZ agreed to sell UDC Finance to Shinsei Bank for the purchase price of NZD762m ($478m) in June this year.
The purchase price represents a price-to-book ratio of 1.2x net tangible assets of NZD$637m as of March 2020.
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By GlobalDataAccording to sources, the bank will raise as much as NZ$2bn ($1.35bn) through this sale, which will add to its balance sheet.
The profit and loss impact of the sale of UDC Finance to Shinsei Bank will be mentioned in ANZ’s Cash Profit and highlighted as a ‘Large’ or ‘Notable’ item.
Shinsei Bank is a Japan-based diversified financial group with both banking and non-banking operations.
It runs asset financing and consumer lending businesses locally and offshore, similar to UDC Finance.
When the deal was first announced, Shinsei Bank CEO Hideyuki Kudo said: “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.”
