It expects the business to inject more capital to fund the bank's growth
ANZ has finally sold industrial and business finance lender UDC Finance to a Japan bank two years since the failure of its original sales deal with China's HNA Group.
Tokyo-based Shinsei Bank bought UDC Finance from ANZ for $762 million. Under the agreement, UDC would continue its operations in its current form with its entire staff. It is also expected to inject more capital to fund the bank's growth.
Commenting on the sales deal, Shinsei Bank chief executive Hideyuki Kudo said: “UDC will become a part of the Shinsei Bank Group, in line with our non-organic growth strategy in this business area.”
Antonia Watson, the chief executive officer of ANZ, said the sale would free up around $2 billion, which would be used to strengthen ANZ's local balance sheet.
“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,” Watson said, as reported by RNZ.
