Japan's Shinsei Bank to buy New Zealand nonbank for $490 mil.
SYDNEY, NNA - Japan's Shinsei Bank will acquire a 100 percent stake in a leading nonbank in New Zealand under Australia and New Zealand Banking Group as part of its strategy to enhance its personal loan business.
The Japanese lender said Tuesday it has sealed a NZ$762 million ($488 million) deal to take over UDC Finance Ltd., which offers auto loans and asset-backed finance for corporate clients including car dealerships.
UDC Finance provides loans to firms in such sectors as transport, forestry and construction, while it holds about a third of the market share in New Zealand in the financing service segment for car dealers, boasting some 58,000 individual and 24,000 corporate clients, the Tokyo-based bank said in a statement.
The share purchase, which is subject to approval from the Overseas Investment Office, New Zealand's regulator, is scheduled to be completed on Aug. 31, the statement said.
UDC Finance's total net assets stood at NZ$3.484 billion and posted a net profit of NZ$70 million in the business year through September 2019, according to the statement. (NNA/Kyodo)