ANZ has sold its NZ car and equipment finance business, UDC Finance, to Shinsei Bank.
Camera IconANZ has sold its NZ car and equipment finance business, UDC Finance, to Shinsei Bank.

ANZ sells NZ asset finance firm for $705m

AAP

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ANZ has sold its asset finance business in New Zealand, UDC Finance, to Shinsei Bank for $NZ762 million ($A705 million).

The bank says the sale follows a strategic review of UDC Finance and is in line with ANZ's strategy to simplify its business.

"Shinsei Bank intends to preserve UDC's operations, retain UDC employees and provide long-term capital to maintain and grow customer lending in New Zealand," ANZ Bank New Zealand chief executive Antonia Watson said on Tuesday.

The sale provides $A439 million of level 2 capital at settlement and will also release $NZ2 billion of funding provided by ANZ New Zealand.

The purchase represents a price-to-book ratio of 1.2x of UDC's net tangible assets of $NZ637 million.

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At 1016 AEDT, ANZ shares were up 0.8 per cent to $18.19.