ANZ (ASX:ANZ) it has agreed to sell its asset finance business in New Zealand, UDC Finance, for NZ$762 million that’s $706 million Australian to Shinsei Bank.
The purchase price represents a price-to-book ratio of 1.2x net tangible assets of NZ$637 million as at 31 March 2020.
The sale provides AUD$439 million of Level 2 Group CET1 capital at settlement.
The sale will also release more than NZ$2 billion of funding provided by ANZ New Zealand, further strengthening its balance sheet position.
Shares in ANZ (ASX:ANZ) are trading 0.9 per cent higher at $18.22.