ANZ considers sharefloat for UDC

ANZ Bank still wants to be rid of its business finance subsidiary, UDC, and is considering a sharefloat.

Photo: RNZ / Russell Palmer

A planned sale of UDC to a Chinese company, HNA Group, for $660 million was refused by the Overseas Investment Office in December.

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ANZ said it will investigate an initial public offering (IPO) of UDC Finance, which funds purchases of equipment, vehicles and machinery.

“While UDC is continuing to perform well and there is no immediate requirement to make decisions, after last year‘s planned sale to HNA did not proceed it makes sense to keep examining a broad range of options for UDC‘s future,” ANZ‘s New Zealand chief executive David Hisco said.

ANZ has previously said UDC does not fit its plan of a more simplified operation. It has been selling assets around Asia to concentrate on banking and investment in home markets.

“The range of strategic options we have for UDC, including approaches we have received regarding the business and the option of retaining it, will take a number of months to examine before any decision is made,” Mr Hisco said.

Heartland Bank has previously expressed interest in UDC.