ANZ's readies to acquire RBS's Asian assets with A$2.5-billion fund raising

28 May 2009

ANZ on Wednesday sold shares to institutional investors at A$14.40 each, a 7.5 per cent discount to the previous closing price, to raise A$2.5 billion aimed at deleveraging its balance sheets. The placement will increase ANZ's capital by 8 per cent.

ANZ says the placement is being made to give the bank greater financial flexibility to pursue strategic and organic growth opportunities and to further strengthen the group's capital position.

However, speculations are rife that the money may be used for the possible purchase of RBS' Asian assets. The bank sees the RBS assets as a base from which to generate substantial value creation.

One of those strategic opportunities in the bank's agenda may be the possible purchase of some of Royal Bank of Scotland's retail and commercial operations in eight Asian countries, as part of ANZ's strategy to become a "super regional" bank focused on Australia, New Zealand and the Asia Pacific.

On 16 April,  ANZ confirmed it had been invited by RBS to participate in the sale process for the lender's Asian assets.

''We need to embrace Asia, and open engagement with the region if we wish to benefit from its growth and the prosperity that it brings,'' chief executive officer Mike Smith said in a speech in Melbourne today.