CEO says the purchase is an “important vote of confidence” in the NZ economy
ANZ New Zealand has finalised the sale of its vehicle and asset finance business UDC Finance to Shinsei Bank, following the Overseas Investment Office (OIO)’s approval of the transaction.
Wayne Percival, chief executive of UDC Finance says the company’s sale to Shinsei Bank for $794 million will allow UDC to continue its operation as New Zealand’s largest non-bank lender.
“Shinsei Bank’s strong funding, international experience and reach, coupled with its deep asset finance experience, will be a real advantage in accelerating the growth of UDC in New Zealand,” Percival commented.
“UDC will continue to operate as a strong, independent finance option in New Zealand, supported by the global expertise and strength of Shinsei Bank, to deliver critical asset funding that will help to fuel our economic recovery.”
Shinsei Bank CEO Hideyuki Kudo says he is “delighted” to have UDC Finance become part of the Shinsei Bank Group, and that it would focus on continuing its growth in New Zealand.
“We believe UDC is a stand-out performer and will be a major asset for the Shinsei Bank Group,” Kudo said.
Read more: ANZ sells UDC Finance to Japan bank
“UDC Finance will continue to operate as an independent finance company and we are taking a long-term approach to building and growing UDC in New Zealand.”
Shinsei Bank will be retaining all current UDC Finance staff along with all of its operations in New Zealand, and will also be providing capital in order to grow funding for its customers.
“We are excited about the opportunity,” Kudo said. “UDC has a significant role to play in supporting the growth of the New Zealand economy and helping businesses and people with their financial needs.
“ANZ and UDC have also entered into a partnership agreement, with UDC continuing to be ANZ’s asset finance partner and we are jointly committed to supporting shared customers.”
A new UDC Finance board has been appointed, and Westpac Banking Corporation CEO Dr David Morgan has come on board as chairman.
Wayne Percival says Shinsei Bank’s investment into UDC is “an important vote of confidence” for the New Zealand economy.
“Shinsei Bank will be growing the company in New Zealand, which is great,” he said. “They like and understand the industries UDC operate in - construction, aviation, road freight, forestry and the automotive industry.
“Most importantly they understand the importance of customer relationships, which has been the key to the success of UDC Finance.”
