ANZ Banking Group is poised to announce it will offload its New-Zealand-based UDC Finance unit to China's HNA Group as early as next week.
Sources told Street Talk the bilateral negotiations were in their final stages as parties worked toward an agreed deal and transition timeframe.
An announcement is anticipated ahead of the bank's annual general meeting on December 16, and this column can reveal conglomerate HNA is being advised by Nomura.
As at March 31, UDC's net assets totalled $NZ392.7 million ($377.5 million), which suggests a price tag of circa $550 million. The company provides asset-based finance to New Zealand businesses for purchasing plants, vehicles and equipment.
HNA has pre-empted a formal UDC auction being kicked off by ANZ, after last year narrowly missing out on snapping up ANZ's $8.2 billion local Esanda dealer finance unit. despite lobbing a higher bid than eventual acquirer Macquarie.
UDC Finance's latest results, which were posted on the company's website on Thursday, showed the unit posted a record net profit of NZ$58.5 million for the year ended September 30. That reflected a 3 per cent increase on the prior corresponding period.
Revenue dipped, however, as improved lending quality and lower provisions were partly offset by a lower net interest margin.
The past year has marked a spending spree for HNA, whose operations span areas including airlines, leasing, insurance, logistics and real estate. Bloomberg notes HNA and its listed arms have announced more than $US34.1 billion of acquisitions in the past 12 months.
That includes a bumper $US6.5 billion stake in Hilton Worldwide Holdings. Locally, HNA owns a stake in Virgin Australia, acquired Allco Finance's aircraft leasing business out of receivership in 2010 and has also been active in commercial property.
Deutsche Bank is advising ANZ.
Elsewhere at ANZ, as revealed by Street Talk on Thursday, the bank has agreed to sell its landmark building on Melbourne's Queen Street to the GPT Wholesale Office Fund.
