![]() ![]() The purchase price of $1.45 billion includes approximately $1.19 billion in net tangible assets and approximately $260 million in goodwill. Westpac already has relationships with 80% of these customers. It is a high quality investment grade portfolio with exposure across Australian corporates, financial institutions and infrastructure and energy projects. The corporate lending portfolio totals $2.7 billion of commitments. As a result, the acquisition will expand the Group’s traditional footprint.ĬFAL’s equipment finance business specialises in the leasing of large trucks, construction and earth moving equipment and office and computer equipment.Īs an operating lease specialist, the acquisition of CFAL will enable WIB to provide a more comprehensive suite of leasing solutions to customers. The motor vehicle finance business will complement St.George’s existing motor vehicle finance business given CFAL’s business features regional and rural Australia, while St.George’s business is focused on metropolitan areas. ![]() Deepening customer relationships with the opportunity to cross sell other Westpac Group products.ĬFAL’s motor vehicle finance and equipment finance business has total receivables of $6.8 billion across 213,000 consumer and commercial customers. ![]() ![]() Building scale and geographic diversity within the Group’s motor vehicle finance business and.Expanding the Group’s capability and reach within equipment finance.Given the proven earnings profile and meaningful synergies, this transaction will deliver approximately $100 million in additional cash earnings by financial year 2015.Īdditional benefits from the transaction include: “Our strong capital position has allowed us to expand our business without having to raise additional equity.” “Importantly the transaction meets our strict acquisition criteria and shareholders will see a benefit to earnings per share in FY14. These are strongly performing businesses that we know well and that will expand our reach and capability in target segments,” Mrs Kelly said. “This is a value creating, straightforward transaction that makes both commercial and strategic sense. Westpac Group Chief Executive Officer, Gail Kelly, said the acquisition would deliver benefits to shareholders and was a good strategic fit with the existing businesses of St.George and Westpac Institutional Bank (WIB). This follows Lloyds’ decision to focus on its UK business. Westpac today announced it has entered an agreement to acquire Lloyds Banking Group’s Australian asset finance business, CFAL, and its corporate loan portfolio, BOSI, for $1.45 billion. The transaction meets Westpac’s disciplined acquisition criteria and is expected to be EPS accretive in FY14.Westpac’s strong balance sheet ensures the acquisition will be fully funded from internal resources.Comprises motor vehicle finance book of $3.9 billion and equipment finance book of $2.9 billion and a corporate loan portfolio of $1.6 billion.Westpac to acquire Capital Finance Australia Ltd (CFAL) and BOS International Australia Ltd (BOSI) for $1.45 billion.Westpac to acquire select businesses of Lloyds Banking Group Australia ![]()
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