Macquarie to Buy ANZ’s Dealer Finance Unit, Raise Capital

The portfolio includes net lending assets of $7.8 billion, comprising retail point-of-sale auto finance of $6.2 billion, and wholesale bailment facilities and other Esanda branded finance offered to motor vehicle dealers of $1.6 billion. It is expected to close by October 31.

In a trading update today, Macquarie announced its intention to conduct an institutional placement to raise $400 million for the acquisition of the ANZ business.

Upon completion of the deal, Macquarie Leasing will have a motor vehicle portfolio of around $17 billion.

The total purchase price for the portfolio is $8.23 billion. Investors are being asked to buy stock at a skinny discount to where Macquarie’s shares last traded at $77.84.

Part of Macquarie’s purchase announcement is expected to deal with the financing of the deal, including an equity raising.

Nicholas Moore’s strategy to focus on businesses that shelter the firm from the boom-and-bust cycle of investment banking.

Macquarie Capital and Credit Suisse advised on the purchase while Deutsche Bank advised ANZ.

Macquarie in mid-September forecast a roughly 40% jump in its first-half profit compared with the same period a year earlier, helped by a weakening local currency and strong performance fees. ( BAM ) to buy Apache Corp.’s ( APA ) Western Australian oil and has assets for US$2.1 billion.

The investment bank has also flagged a big rise in half year profit to over $1 billion, but lowered its expectations for the following six months.