Ja­pan bank to buy ANZ Bank’s UDC for $762m

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ANZ Bank has fi­nally found a buyer for its in­dus­trial and busi­ness finance lender

UDC.

Ja­pan’s Shin­sei Bank is to buy UDC for $762 mil­lion (FJ$ 1677 mil­lion) af­ter an orig­i­nal deal to sell it to China’s HNA Group for $660m (FJ$1453m) was knocked back by the Overseas In­vest­ment Of­fice in 2018.

ANZ had also toyed with float­ing UDC in a lo­cal share sale but re­con­sid­ered and last year de­cided to hold on to it.

“With a strong out­look for in­fra­struc­ture and agri­cul­ture projects as the New Zealand econ­omy re­builds post-Covid-19, there is a sig­nif­i­cant role for UDC to play. “As such, it needs an owner that can in­vest in and grow the busi­ness,” chief ex­ec­u­tive An­to­nia Wat­son said.

Tokyo-based Shin­sei is a di­ver­si­fied fi­nan­cial group with a wide range of bank­ing, busi­ness and con­sumer lend­ing in Ja­pan and overseas.

“UDC will be­come a part of the Shin­sei Bank Group, in line with our non-or­ganic growth strat­egy in this busi­ness area,” chief ex­ec­u­tive Hideyuki Kudo said.

Shin­sei will keep UDC op­er­at­ing in its cur­rent form with all staff, and in time ex­pected to in­ject more cap­i­tal to fund growth.

Wat­son said the sale would even­tu­ally free up about $2bil­lion (FJ$ 4.39917 bil­lion), which would be used to strengthen ANZ’s lo­cal bal­ance sheet.

ANZ would make a gain of $63m (FJ$138.574m) over UDC’s book value, al­though that would turn into a $73m (FJ$160m) loss when good­will was taken into ac­count.

UDC has about $3.4bn (FJ$7.4bn) of loans and ad­vances, and posted a net half-year profit of more than $24m (FJ$52m).

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