ANZ sells Visa shareholdings, steps away from Hong Kong deal
(21 September 2012 – Australia) ANZ has pulled out of a plan to acquire a Hong Kong bank over a disagreement over price.
ANZ expressed interest in buying Hong Kong-based banks with chief executive Mike Smith stating in April that prices of banks in the Asian financial centre were ''attractive'' for a takeover.
An unsourced report in the South China Morning Post yesterday said ANZ had abandoned its pursuit of an unnamed family-controlled bank.
Family-controlled banks in the city include Bank of East Asia, Wing Hang Bank, Dah Sing Bank and Chong Hing Bank.
An ANZ spokesman declined to comment on the report, but said: ''We are focused on organic growth in greater China. We have built a strong regional platform, we are very well capitalised, we retain an AA credit rating and we are in greater China for the long term.''
ANZ invested A$300 million in China in May to open branches and recruit staff.
On Wednesday ANZ also advised it had sold its remaining shareholding in Visa inc, reflecting a continuing commitment to active management of capital across the Group.
ANZ’s shareholding in Visa Inc. was received as part of the 2007 Visa Inc. Initial Public Offering.
Approximately 3.5 million Visa Inc. shares have been sold by ANZ resulting in an after tax profit of A$224 million. Consistent with the treatment of a previous tranche of Visa shares sold by ANZ in 2008, the gain will be treated as a non-core item in ANZ’s 2012 financial results.
An unsourced report in the South China Morning Post yesterday said ANZ had abandoned its pursuit of an unnamed family-controlled bank.
Family-controlled banks in the city include Bank of East Asia, Wing Hang Bank, Dah Sing Bank and Chong Hing Bank.
An ANZ spokesman declined to comment on the report, but said: ''We are focused on organic growth in greater China. We have built a strong regional platform, we are very well capitalised, we retain an AA credit rating and we are in greater China for the long term.''
ANZ invested A$300 million in China in May to open branches and recruit staff.
On Wednesday ANZ also advised it had sold its remaining shareholding in Visa inc, reflecting a continuing commitment to active management of capital across the Group.
ANZ’s shareholding in Visa Inc. was received as part of the 2007 Visa Inc. Initial Public Offering.
Approximately 3.5 million Visa Inc. shares have been sold by ANZ resulting in an after tax profit of A$224 million. Consistent with the treatment of a previous tranche of Visa shares sold by ANZ in 2008, the gain will be treated as a non-core item in ANZ’s 2012 financial results.
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