The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price has been a positive performer on Tuesday.
In morning trade the banking giant's shares climbed 1.5% to $18.31. This follows the release of an announcement relating to an asset sale today.
What did ANZ announce?
This morning ANZ announced that it has agreed to sell its New Zealand asset finance business, UDC Finance, for NZ$762 million to Japan's Shinsei Bank.
This sale follows a strategic review of the UDC Finance business. It is also in line with its strategy to simplify its business.
According to the release, the sale will provide ~A$439 million (~10bps) of Level 2 Group CET1 capital at settlement.
It will also release more than NZ$2 billion of funding provided by ANZ New Zealand, further strengthening its balance sheet position.
ANZ Bank New Zealand's CEO, Antonia Watson, was pleased with the asset sale and believes it is a significant vote of confidence for the New Zealand economy.
She said: "With a strong outlook for infrastructure and agriculture projects as the New Zealand economy rebuilds post-Covid-19, there is a significant role for UDC Finance to play. As such, it needs an owner that can invest in and grow the 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. The sale will also mean UDC Finance will continue to operate as an independent finance company and enhance competition in the asset finance market," Ms Watson added.
Is the ANZ share price in the buy zone?
The ANZ share price may have charged notably higher over the last couple of weeks, but I don't think it is too late to invest.
Although it isn't my top pick in the sector, I think it remains a great option at the current level. Especially given its improving balance sheet and the quicker than expected reopening of the Australian economy.
