ANZ will sell UDC Finance to HNA Group, a global company focused on tourism, logistics and financial services.
“The sale of UDC is consistent with our strategy to simplify the bank and is a good outcome for customers and staff,” ANZ New Zealand CEO David Hisco said.
“HNA Group is one of the world’s largest asset finance and leasing companies, and it intends to preserve UDC’s operations including offering continued employment to all staff,” he said.
A trading update revealed a sale price of NZ$660 million ($626 million).
UDC Finance’s net loans and advances as at 30 September 2016 were NZ$2.6 billion ($2.5 billion).
ANZ will gain 10 basis points of APRA CET1 capital as a result of the sale.
“The transaction also includes the Esanda name and trademarks in Australia and New Zealand,” ANZ said in a statement.
“The additional consideration for the name and trademark sale is not material to ANZ. The UDC sale is subject to closing steps and conditions including engaging with investors on the replacement of the secured investment program and regulatory approvals.”
Completion is expected late in the second half of the 2017 calendar year.
[Related: ANZ reprices investor loans]