UDC Finance offshore sale rejected

Approval to sell New Zealand’s largest finance company to international buyers has been declined by the Overseas Investment Office (OIO).

The government agency has rejected an application from Chinese company HNA group to purchase ANZ’s UDC Finance for $660 million.

The OIO says the sale was turned down as information provided about HNA ownership and control interests was “not sufficient or adequate”.

“We were therefore not satisfied that the investor test in section 18 of the Overseas Investment Act 2005 was met.

“Without knowing who the relevant overseas person is, the OIO cannot be satisfied that section 18 has been met, therefore we are unable to grant consent.”
ANZ chief executive David Hisco says he is not sure if HNA will attempt to overturn the decision.

“While the sale agreement between the parties remains in place, unless HNA successfully overturns the OIO decision, the sale will not proceed.

“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 staff and customers,” he says.

The OIO decision has no impact on the recently announced A$1.5 billion on-market buy back of ANZ Banking Group shares.

HNA, headquartered in Hainan and founded in 1993, is involved in aviation, real estate, financial services, tourism and logistics.

The Fortune Global 500 company has around US$145 billion of assets, over US$90 billion in annual revenues, and an international workforce of 410,000 employees around the world.