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