Japanese bank to buy finance lender, UDC

JAPAN’S SHINSEI BANK IS TO BUY INDUSTRIAL AND BUSINESS finance lender, UDC, from ANZ Bank for $762 million. The original deal to sell it to China’s HNA Group for $660m was rejected by the Overseas Investment Office in 2018.

“With a strong outlook for infrastructure and agriculture projects as the NZ 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,” says ANZ Chief Executive, Antonia Watson.

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

Chief Executive, Hideyuki Kudo, says Shinsei will keep UDC operating in its current form with all staff and, in time, expects to inject more capital to fund growth.

UDC has about $3.4 billion of loans and advances, and posted a net half-year profit of more than $24 million.

NZL