Australia and New Zealand Banking Group (ANZ) has signed an agreement to divest its 55% stake in Cambodian JV ANZ Royal Bank to Japanese diversified financial holding company J Trust.
The decision to divest the stake is part of the ANZ Group’s ongoing strategic review of international partnerships.
Under the terms of the agreement, ANZ will continue to hold its 55% stake and manage the ANZ Royal business for up to 12 months. In the meantime, it will work with J Trust to ensure a seamless transition of ownership.
The stake sale is expected to result in a loss of A$30m ($22.59m) for ANZ.
The deal value and other financial details of the deal were not divulged. The transaction has been approved by its joint venture partner Royal Group of Cambodia.
ANZ group executive International Farhan Faruqui said: “This joint venture has been beneficial to both ANZ and the Royal Group over the past 13 years, with ANZ Royal now a strong and successful bank.
“We view the business environment in Cambodia as attractive and recognise it’s an important growth economy in the ASEAN region, however the sale is in line with our efforts to exit minority investments and partnerships to focus on our Institutional business in Asia.”
ANZ has also sold its stake in Metrobank Card in the Philippines and Shanghai Rural Commercial Bank in China. It is also exiting from the Australian life insurance and superannuation businesses.
The transaction is subject to final regulatory approval from the National Bank of Cambodia and the Ministry of Commerce.