Australia and New Zealand Banking Group (A[ds_preview]NZ) sells its 20% stake in Shanghai Rural Commercial Bank (SRCB) to China COSCO Shipping Corporation Limited and Shanghai Sino- Poland Enterprise Management Development Corporation.
According to ANZ the agreement will see China COSCO Shipping and Sino-Poland Enterprise each acquire 10% of SRCB for a total consideration to ANZ of RMB 9,190 million (A$ 1,838 million). The sale price represents a price-to-book ratio of approximately 1.1 times SRCB’s net assets as at December 2015.
ANZ has invested a total of A$ 568 million in SRCB. Since 2007, the bank has recognised A$ 1.3 billion of equity accounted earnings and received A$ 178 million in dividends. In the 2016 Financial Year the SRBC investment contributed A$259 million to ANZ’s post-tax profits.
The sale, agreed on 31 December 2016, is subject to customary closing conditions and regulatory approvals and is expected to be completed by mid-2017.
ANZ Deputy Chief Executive Officer Graham Hodges said: »This partnership has been beneficial for both ANZ and for Shanghai Rural Commercial Bank. SRCB is now a strong, successful bank with a prosperous future. As we have previously stated, the sale reflects our strategy to simplify our business and improve capital efficiency.«
ANZ wants to focus now on Institutional Banking business in Asia. This includes a significant commitment to China over the past 30 years with 100% ANZ-owned branches in Beijing, Shanghai, Guangzhou, Chongqing, Chengdu, Hangzhou and Qingdao.
