Agribusiness services provider AWB Ltd
(ASX:AWB) has announced the sale of its Landmark Financial Services $2.4 billion loan book and $300 million debenture book to Australia and New Zealand Banking Group Ltd
(ASX:ANZ).
The sale of the loan book and debenture books is subject to approval from the Australian Competition and Consumer Commission and Australian Prudential Regulation Authority.
AWB Managing Director Gordon Davis says this transaction contributes significantly to achieving the company’s corporate objectives as it simplifies the business and enables AWB to significantly reduce its level of debt.
In addition to the sale of Landmark’s loan and debenture books, Landmark has also entered into an exclusive relationship with ANZ for Landmark to refer any customer who may be interested in acquiring financial products to ANZ.
AWB says it will book a $62 million pre-tax significant item for restructuring costs and write-off on the lending book in the financial year ending September 30 2010.
AWB posted a $250.82 million loss in 2009 and ANZ’s 2009 net profit was $2.9 billion.
