Udc finance

[bull....]

I have read ANZ is considering an IPO of UDC FINANCE

Would be a good alternative to heartland ..... by the way i dont know if its on the nzx or asx

[percy]

I have read ANZ is considering an IPO of UDC FINANCE

Would be a good alternative to heartland ..... by the way i dont know if its on the nzx or asx

I think UDC only operate in NZ,so most probably list in NZ.\
UDC is an excellent business,so depending on price, it would be a very good investment.

[Beagle]

http://www.sharechat.co.nz/article/a60c0ca2/anz-mulls-udc-finance-ipo-after-sale-rejected-by-overseas-investment-office.html?utm_medium=email&utm_campaign=ANZ%20mulls%20UDC%20Finance%20IPO%20a fter%20sale%20rejected%20by%20Overseas%20Investmen t%20Office&utm_content=ANZ%20mulls%20UDC%20Finance%20IPO%20af ter%20sale%20rejected%20by%20Overseas%20Investment %20Office+CID_6bf783ffa05f34e382282c2d7d203e8c&utm_source=Email%20marketing%20software&utm_term=httpwwwsharechatconzarticlea60c0ca2anz-mulls-udc-finance-ipo-after-sale-rejected-by-overseas-investment-officehtml

[macduffy]

I think UDC only operate in NZ,so most probably list in NZ.\
UDC is an excellent business,so depending on price, it would be a very good investment.

I agree, percy. UDC has been a very successful company, both before and after ANZ bought out minority holders many years ago. ANZ's recent policy has been to divest their finance company interests so I wouldn't expect them to retain any part of the company in the event of an IPO.

[Marilyn Munroe]

Asset finance is a good game to be in if you understand the risks. One sector that needs experience is the road transport sector. There is a reasonable amount of churn there where you don't want to be the financier left holding the baby.

This type of investment is likely to be keenly sought by Kiwi Saver funds so I expect it will be launched fairly fully priced.

Boop boop de do
Marilyn

[Marilyn Munroe]

A poster in another forum has wondered why ANZ is wanting to sell UDC and speculated ANZ is dumping UDC on Mum and Dad investors because its outlook is uncertain. This is possible but there is a more likely explanation.

The Reserve Bank of Australia is to impose greater capital adequacy onto the banks it regulates. The ANZ is likely reaching under the sofa cushions to come up with the cash the adequacy increase will require.

Boop boop de do
Marilyn

[Joshuatree]

Capital adequacy is the reason imo. ANZ have also sold their wealth business, to IFL (i hold) to build their capital too. Outlook is for volatility and uncertainty atm for sure.Aus banks beginning to look like good buys for longtermers because of this.

[percy]

From memory ANZ are funding UDC to the tune of over $2 billion.
A sale of UDC at say $500mil, would therefore unwind a big commitment ANZ have to UDC.
Yes greater capital adequacy ratios,a Royal Commission, and heavy property leading exposure, means Aussie Banks still face challenges.

[Joshuatree]

They do.ANZ got A$975 million btw selling its wealth business to IFL.

[macduffy]

Capital adequacy is the reason imo. ANZ have also sold their wealth business, to IFL (i hold) to build their capital too. Outlook is for volatility and uncertainty atm for sure.Aus banks beginning to look like good buys for longtermers because of this.

Yes, part of a policy of consolidation to, largely, Aust and NZ banking. Capital position seems to have improved, largely from sale of Esanda, wealth businesses and various Asian minority interests, to the extent that sale of UDC is not pressing.

[bull....]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12075202

[minimoke]

https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=12075202
The spit and polish is starting to come out. Getting closer to decision day.

[trader_jackson]

The spit and polish is starting to come out. Getting closer to decision day.

Yes, decision time is looming.
Some say it is an IPO

[JoeGrogan]

Yes, decision time is looming.
Some say it is an IPO

Hope so, we need something new on the nzx this year.

[macduffy]

Yes, decision time is looming.
Some say it is an IPO

Decision my be "no decision". There's no pressing need for ANZ to sell what is really a small part of the ANZ Group.

[trader_jackson]

Saw in AFR late yesterday:
"Street Talk understands Carson is part of a team at the new PwC/PPB entity which has been engaged to explore growth options for UDC as it prepares to float on the Australian and New Zealand stock exchanges."

[bull....]

https://www.interest.co.nz/banking/95879/two-and-half-years-after-anz-put-its-nz-vehicle-and-asset-finance-provider-udc-block

Two and a half years after ANZ put its NZ vehicle and asset finance provider UDC on the block there's no indication of an imminent sale

[macduffy]

No IPO of UDC.

https://www.asx.com.au/asxpdf/20181031/pdf/43ztfl9k05dy4r.pdf

[iceman]

No IPO of UDC.

https://www.asx.com.au/asxpdf/20181031/pdf/43ztfl9k05dy4r.pdf

Even more than no IPO, no sale whatsoever for now !! " we have decided to put a hold on all sale discussions for now and focus on continuing to grow the business"

[percy]

Even more than no IPO, no sale whatsoever for now !! " we have decided to put a hold on all sale discussions for now and focus on continuing to grow the business"

Makes good sense.

[iceman]

Makes good sense.

Gives Jeff more time to prepare :-)

[Beagle]

Phew..as a shareholder in HBL / HGH my opinion is that UDC is simply too big for them to acquire. I have had concerns that any likely share issuance and probable size of discount to get it done would have most likely have had to be huge and the funding required to grow the two companies is easier said than done and would have probably led to them having to pay well above market rates to get deposit funding support. Too risky...steady organic growth with lower risk is a considerably better strategy in my view. Removal of this contigent overhang risk is a clear positive as far as I am concerned.

[RTM]

…….and focus on continuing to grow the business"

Yes....and that will be more competition in the market for Heartland.

[percy]

Yes....and that will be more competition in the market for Heartland.

Not so.
They have been at logger heads for years,yet both do extremely well.
Maybe UDC are a lot stronger than Marac in Heavy Equipment.

[whatsup]

How would the new R B requirements effect the sale of UDC and its banking ratios now ?

[trader_jackson]

No impact, they are not a bank, they are a finance company?
Could be beneficial for finance companies as banks are constrained...?