Westpac (ASX:WBC) to divest vendor finance business

Westpac Banking Corporation (ASX:WBC) has sold its vendor finance business, Strategic Alliances, to Angle Finance.

Angle Finance is a portfolio company of private equity group Cerberus Capital Management.

Westpac’s Vendor Finance portfolio is made up of around $500 million of loans to 42,000 Australian businesses, predominantly for small ticket equipment.

The transaction will result in a small accounting loss on sale due to the transaction being structured with an initial payment on completion and deferred payments to be made over a two-year period following completion.

Completion of the transaction is expected to occur at the end of April 2021.

Shares in Westpac Banking Corporation (ASX:WBC) are trading 2.03 per cent higher at $17.61.
 
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Source: Finance News Network