ANZ responds to OIO decision
21 December 2017
Media Release
ANZ Bank New Zealand has been informed that New Zealand’s Overseas Investment Office has declined HNA Group’s application to acquire UDC Finance.
ANZ Bank Group Executive and New Zealand CEO David Hisco said: “While the sale agreement between the parties remains in place, unless HNA successfully overturns the OIO decision, the sale will not proceed.
We don’t know if HNA will attempt to overturn the decision.
If the sale does not proceed, we’ll assess our strategic options regarding the future of UDC. It’s a great business and there is no immediate requirement to do anything, particularly given the strength of ANZ’s capital position.
UDC continues to be a highly profitable and strong business, with great staff and customers, and a growing loan portfolio across a range of industries.
UDC’s focus remains on its core business of financing vehicles and equipment for people and companies across New Zealand. So, it will be business as usual for our staff and customers.”
For media enquiries contact:
Stefan Herrick: +64 21 748492,
Or
Stephen Ries:+61 409 655 551
What will this decision mean for debenture holders?
- As previously announced, the sale agreement between ANZ and TIP-HNA in relation to UDC was subject to certain conditions (including regulatory approvals) and the OIO decision means that those conditions have not been satisfied.
- While the sale agreement between ANZ and TIP-HNA remains in place, unless TIP-HNA successfully overturns that decision, the sale of UDC to TIP-HNA cannot proceed.
- If the sale to TIP-HNA does not proceed, UDC will not be required to repay your UDC Secured Investments early and your investment will continue as usual. However, for so long as UDC is owned by ANZ (or another member of the ANZ Group), UDC may still exercise its right to repay all of your UDC Secured Investments at any time.
- UDC is under no obligation to exercise this right and you should not assume that we will do so, regardless of whether ANZ continues to own UDC.
- Even if the sale of UDC to TIP-HNA does not proceed, the ownership of UDC may still change in the future. There is no certainty that ANZ will own UDC for the duration of your investment.