Macquarie Group (MQG.AX,MQBKY.PK), a provider of banking, financial, advisory, investment, and funds management services, has agreed to acquire the Esanda dealer finance portfolio from Australia and New Zealand Banking Group Ltd. for about A$8.2 billion.
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The Esanda portfolio being sold has a book value of $7.8 billion, net of provisions and excluding capitalised origination fess and unearned income, implying a purchase premium in excess of $400 million.
In a trading update today, Macquarie announced its intention to conduct an institutional placement to raise $400 million for the acquisition of the ANZ business. JPMorgan, Macquarie Capital and Bank of America Merrill Lynch are managing the raising. It would need initial capital of about A$800 million, half of which would be raised through an institutional share placement, Macquarie said in a statement.
For ANZ, the deal will help boost its common equity Tier-1 ratio by 20 basis points and satisfy tough new capital requirements.
Macquarie’s total motor vehicle finance portfolio will increase to about A$17 billion from A$9 billion.
The competition regulator last month said it was comfortable with the proposed purchase by Macquarie. ( BAM ) to buy Apache Corp.’s ( APA ) Western Australian oil and has assets for US$2.1 billion.
It also forecast a 55 per cent lift in first half earnings compared to the previous corresponding period.
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It is expected to be accompanied by a share purchase plan.
