Sourced Content
Radio New Zealand
Auckland January 13, 2017
ANZ Bank has agreed to sell UDC Finance to a Chinese company for $660 million.
HNA Group is headquartered in the world’s second biggest economy and focuses on tourism, logistics and financial services.
ANZ chief executive David Hisco said the sale came after a review of UDC.
“(The sale) was in line with ANZ’s strategy to simplify its business and focus on its core banking activities,” he said.
Last year, S&P Global Ratings downgraded the rating of UDC and kept it on a negative credit watch, because it thought the company would be sold.
Mr Hisco said UDC was performing well and the purchase was a vote of confidence in the New Zealand economy.
“HNA doesn’t currently operate in New Zealand, so this sale will maintain competition in the asset finance and leasing market which is good for customers,” he added.
The Chinese company planned to keep current UDC employees and maintain existing customer lending.
The sale is expected to be completed later this year.
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