AUSTRALIA’S fourth-biggest bank ANZ Group said on Wednesday (Mar 6) it has agreed to sell a 16.5 per cent stake in Malaysian lender AMMB Holdings for RM3.85 (S$1.09) apiece through a block trade.
The deal has been upsized to a 16.5 per cent stake sale from 9 per cent previously agreed on Mar 5, according to a term sheet seen by Reuters.
The offer price is a discount of 8.3 per cent to the closing price of AMMB’s shares of RM4.20 on Tuesday.
ANZ’s shareholding in AmBank will reduce to 5.2 per cent from 21.7 per cent once the sale is completed.
The stake sale is in line with ANZ’s strategy, which includes shrinking key business lines involving low-returning institutional loans and its exposure to retail and wealth banking in Asia as it looks to boost its return on equity.
Proceeds from the sale will increase ANZ’s CET1 ratio by 16 basis points, but would not have an incremental impact on profits, the bank said.
The settlement of the sale is expected to take place on Mar 8. REUTERS
