ANZ Bank is to purchase the 51 per cent of Dutch-based ING's Australian and New Zealand operations that it does not already own.
Shares in ANZ, ING Medical Properties Trust, and ING Property Trust were all placed on a trading halt on the NZX and ASX prior to announcement
of the A$1.76 billion (euros1.1 billion) deal in which Australasia's largest bank will mop up the remaining half of the ING funds management business.
The companies involved are ING Australia and ING New Zealand and the transaction values the two entities at 11 times normalised 2008 earnings and 1.2 times embedded value at December 31, the ANZ said in a media statement.
"The transaction is expected to be cash earnings per share accretive in FY2010 pre-synergy benefits." ANZ would become the third largest player in the Australian life insurance market, fifth in Australia and first in New Zealand for funds management, and would provide more flexible opportunities to pursue wealth management opportunities.
The purchase played to ANZ's strategy of taking advantage of the global financial crisis and ANZ's strong balance sheet to pursue growth, said ANZ chief executive Mike Smith.
The future use of the ING brand in either market has yet to be determined. The transaction is subject to regulatory approvals in both countries and is targeted for completion before the end of the year.
The managers of the property trusts are fully owned by ING New Zealand. ING Groep NV, the ultimate parent of the Australasian subsidiaries, has been selling assets after it received 10 billion euro from the Dutch government in the wake of the credit crisis.
Shares in ANZ rose 1.3 per cent to $28.40 on the NZX when the trading halt lifted, while ING Medical Property Trust was at $1.16 and ING Property Trust
was 81 cents.
-BUSINESSWIRE
