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ANZ has sold its asset finance business in New Zealand, UDC Finance, to Shinsei Bank for $NZ762 million ($A705 million).

The bank says the sale follows a strategic review of UDC Finance and is in line with ANZ’s strategy to simplify its business.

“Shinsei Bank intends to preserve UDC’s operations, retain UDC employees and provide long-term capital to maintain and grow customer lending in New Zealand,” ANZ Bank New Zealand chief executive Antonia Watson said on Tuesday.

The sale provides $A439 million of level 2 capital at settlement and will also release $NZ2 billion of funding provided by ANZ New Zealand.

The purchase represents a price-to-book ratio of 1.2x of UDC’s net tangible assets of $NZ637 million.

At 1016 AEDT, ANZ shares were up 0.8 per cent to $18.19.