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Thread: Udc finance

  1. #1
    ShareTrader Legend bull....'s Avatar
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    Default Udc finance

    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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  2. #2
    percy
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    Quote Originally Posted by bull.... View Post
    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.

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    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by percy View Post
    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.

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    Senior Member Marilyn Munroe's Avatar
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    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.

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    Senior Member Marilyn Munroe's Avatar
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    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.

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    Last edited by Marilyn Munroe; 05-04-2018 at 10:42 AM. Reason: changed word
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  7. #7
    IMO
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    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.

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    percy
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    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.

  9. #9
    IMO
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    They do.ANZ got A$975 million btw selling its wealth business to IFL.

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    Quote Originally Posted by Joshuatree View Post
    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.

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