ANZ considers KEB funding options
(20 September 2010 – Australia) Australia and New Zealand Banking Group (ANZ) will consider all funding options if the bank decides to go ahead with purchasing a controlling stake in the Korean Exchange Bank.
The bank is looking to purchase the A$4.3 billion, 51 percent stake from a private US equity firm Lone Star.
ANZ has previously announced that it was completing due diligence on KEB, and reports have emerged over the weekend that this had now been completed; however the bank is still understood to be pouring over KEB’s books.
Despite Australia’s third largest bank having sufficient regulatory capital to fund the acquisition from existing reserves and debt, the bank is still open to the option of a later equity issue to keep its position strong, The Australian newspaper reported.
There are some within ANZ and among its advisers at Goldman Sachs and JPMorgan who believe an entitlements-based equity raising would be warmly received by shareholders given the recent performance by ANZ shares against the other big four banks.
ANZ has previously announced that it was completing due diligence on KEB, and reports have emerged over the weekend that this had now been completed; however the bank is still understood to be pouring over KEB’s books.
Despite Australia’s third largest bank having sufficient regulatory capital to fund the acquisition from existing reserves and debt, the bank is still open to the option of a later equity issue to keep its position strong, The Australian newspaper reported.
There are some within ANZ and among its advisers at Goldman Sachs and JPMorgan who believe an entitlements-based equity raising would be warmly received by shareholders given the recent performance by ANZ shares against the other big four banks.
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