In recent weeks, there's been a lot of a talk about the potential suitors for Australia and New Zealand Banking Group's (ASX: ANZ) dealer finance unit, Esanda.
However, it appears all but official that Australia's largest investment bank, Macquarie Group Ltd (ASX: MQG), has been successful and will buy the $8.2 billion motor vehicle and equipment loan portfolio.
The initial price paid by Macquarie will be less than $1 billion. To pay for the transaction, Macquarie will undertake a placement and share purchase place plan to raise $400 million. Upon completion of the deal, Macquarie Leasing will have a motor vehicle portfolio of around $17 billion.
ANZ says the sale will enable it to increase its common equity capital ratio by an impressive 0.2%. "The sale of the Esanda Dealer Finance portfolio reflects a continued focus by ANZ on core businesses and further strengthens our capital position," ANZ Australia CEO Mark Whelan said.
However, the Esanda transaction isn't the only reason Macquarie shares are in an ASX trading halt today.
After recently upping its profit guidance the $26 billion investment bank said its first half profit is expected to be up 55% year over year. While second half profits will be lower than first half profits, it expects to pay an interim dividend of $1.60 per ordinary share, franked at 40%.
Over the medium term, Macquarie said it remains well placed to deliver superior performance given its deep expertise in major markets and ongoing cost initiatives.
Macquarie Group shares have doubled over the past five years.
