One of New Zealand’s largest asset finance operators is preparing for its potential sale to a Chinese conglomerate based in Hainan, China.
UDC Finance Limited’s (UDC) debenture holders are passing a special resolution to amend the company’s trust deed.
The amendment requires UDC to repay secured investments if a sale to HNA Group (HNA) is successful, and allows UDC to repay the Secured Investments at any time.
“Amending the trust deed is a significant step in preparing UDC for sale to HNA Group,” says UDC chief executive officer Wayne Percival.
“Historically our trust deed has not allowed UDC to secure other sources of funding, or to initiate early repayment of secured investments,” says Percival.
“The amendment gives investors the certainty that if a sale to HNA Group completes, they can decide what they wish to do with the funds they have invested in UDC,” he says.
The amendment allows UDC to wind up the existing debenture programme, which is expected to occur later this year.
When this happens, investors will be able to choose whether their Secured Investments convert into an equivalent product issued by ANZ Bank New Zealand Limited, repay directly, or reinvest into a new UDC debenture programme, if available.
