Westpac Banking Corporation (ASX:WBC)
has sold its vendor finance business, Strategic Alliances, to Angle Finance.
Angle Finance is a portfolio company of private equity group Cerberus Capital Management.
Westpac’s Vendor Finance portfolio is made up of around $500 million of loans to 42,000 Australian businesses, predominantly for small ticket equipment.
The transaction will result in a small accounting loss on sale due to the transaction being structured with an initial payment on completion and deferred payments to be made over a two-year period following completion.
Completion of the transaction is expected to occur at the end of April 2021.
Shares in Westpac Banking Corporation (ASX:WBC)
are trading 2.03 per cent higher at $17.61.