ANZ completes Shanghai bank sale, announces share buyback
SYDNEY: ANZ Bank completed the sale of its stake in Shanghai Rural Commercial Bank Monday and announced plans for a A$1.5 billion ( US$ 1.15 billion) share buyback with the funds.
The lender agreed to off load its 20 per cent holding in the company earl ier this year for A$ 1.84 billion, with Chinese shipping giant COSCO and Shanghai Sino- Poland Enterprise each taking 10 per cent.
The move is part of the Australia and New Zealand Banking Group simplifying its business, having announced last year the sale of its retail and wealth management arms in f ive Asian countries to Singapore’s DBS.
Last week, it decided to sell its life insurance arm to Swiss giant Zurich for A$ 2.85 billion.
ANZ’s chief financial officer Michelle Jablko said the money from the Shanghai sale would be returned to shareholders, with the bank to buy- back up to A$ 1.5 billion of stock onmarket.
“ANZ’s strong capital position combined with the progress made in simpl ifying our business means we are now in a position to commence returning surplus capital to shareholders,” she said.
Jablko added that the d ive s tment of non- cor e businesses “should provide ANZ with flexibility to consider further capital management initiatives in the future”.
ANZ shares were 1.31 per cent higher at A$ 28.59 in morning trade. — AFP