Chinese bank in line to acquire NZ asset financier
(8 December 2016 – New Zealand) According to sources, ANZ Banking Group is in the process of selling its New-Zealand-based UDC Finance unit to China's HNA Group.
Sources told Fairfax Media the negotiations were in their final stages as parties worked toward an agreed deal and transition timeframe.
An announcement is anticipated ahead of the bank's annual general meeting on December 16, and this column can reveal conglomerate HNA is being advised by Nomura.
The company, which provides asset financing for New Zealand businesses is valued at around A$550 million.
The Chinese firm has made a bid before ANZ could auction of the company following its failure to acquire Esanda, ANZ’s dealer finance unit in Australia.
UDC Finance's latest results showed the unit recorded a three percent increase in net profits, representing a record NZ$58.5 million for the year ended 30 September.
According to Bloomberg, HNA has spent more than US$34.1 billion in the last 12 months on expansion through acquisitions. In Australia, HNA owns a stake in Virgin Australia, it also acquired Allco Finance's aircraft leasing business out of receivership in 2010.
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