ANZ extends rural reach
The ANZ Banking Group has purchased the loan and debenture books of AWB’s rural service provider, Landmark Financial Services.
On top of the transaction related to the debenture and loan books, Landmark has also entered into an exclusive three-year relationship with ANZ to refer any customers who may be interested in acquiring financial services products to ANZ.
The move will significantly increase the ANZ’s business footprint in rural and regional Australia via 640 staff in 131 business centres.
The Landmark loan book was valued at $2.4 billion, while the debenture book was valued at $300 million. The transaction resulted in a $2.1 billion debt reduction for AWB and the release of about $155 million in cash to the company.
Commenting on the transaction, AWB managing director Gordon Davis said it was consistent with the company achieving a streamlined debt profile and simpler lower-risk business.
It is expected that most Landmark Financial Services employees will be offered employment with ANZ.
AUTHOR
Mike Taylor
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