ANZ Banking Group to get US$1.5 billion from Finance unit of Esanda

Published Date : May 04, 2015

ANZ Banking Group has stated that it is planning to relieve of its Finance unit of Esanda, in an auction, which may generate offshore and local interest and watch the lender get leads in the order of US$1.5 billion. 

The sale that is roughly half of the overall assets sitting under the wider Esanda arm exhibits US$8.3 billion in assets. In a statement issued on Monday, ANZ stated that the sale documents were due to be out later in this month. The 1st round of bids is estimated before the end of June, 2015. 

The sale consists of bailment facilities, point-of-sale finance, and other Esanda branded finance provided to the vehicle dealers, ANZ stated. The Australian Financial Review disclosed in January, 2015 that the ANZ was thinking over a sale of all or a part of Esanda. 

This sale will cover the unit that offers loans to the car dealers for floor stock financing, also known as floor plan financing, and there is a retail section where the dealers provide the financing directly to the customers. The assets being primed for sale are stated to garner annual pre-tax profit from US$170 million to US$190 million. The sale may attract a price of US$1.5 billion, excluding debt. ANZ is taking assistance from the Deutsche Bank.

Interested groups are circling the ANZ assets, specifically after GE Capital sold its customer finance arm to Deutsche Bank, KKR & Co, and Varde Partners for almost US$1.2 billion, excluding the debt, in a contested procedure earlier in 2015. GE is now dissociating from commercial assets in Australia. The GE customer arm was a higher revenue generating division, whereas, the businesses such as the secured car lending were with lower margin and are often with lower risk.