Page 39 - TIP Trailer Services Press Cuttings July 2017

12052017 Chinese conglomerate HNA plans to dace NZ finance company UDC under the wing of its large European-Canadian equi pment service subsidiary
$2 000:000
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$1 0,000

grown even ln challenginH tirnes 20% Deposit 90,000-.'- '. - - '- .-'-- .l
when cther nsn-bank financing
compani€s have failed." a\-.)/ $; :

Loan Terms Year/s

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Srrvirr:l nterest

The dea! raised eyebrows when itwas announced, with the privately-owned HNA, evolving from a regional
airline founded in only 1993, having grown spectacularly in recentyears, and questions raised aboutexactly
how it has been bank-rolling iis acquisitions- These questions continue to be asked.

ANZ said recently it believed HNA would be a good owner of UDC and that the deal was progressing as PaymentFrequency -M..o.n.t.h'.ly
originally intended. See here for other UDC sale articles.
oNGOING $t
TIP's Fast said that TIPIHNA were confident ihe acquisition of UDC would progress largely to the timetable that
has been setoutand there had been no problemsencountered. REPAYMENT

"No, to date the proposed purchase has progressed in line with ourexpectations," he said.

'HNA focused on becoming a global leader'

Asked why HNA had wanted to buy UDC, Fast said HNA Group was focused on becoming a global leader in
tourism.logistics and f nancial seruices.

"Our strategy is sustained growth achieved by acquiring successful businesses. We look for businesses with a The @bulations in this toolare @nt@lled by inieest.m.nz.
leading market position, strong customer relationships, growth potential and solid managemeni teams." Tems & Conditions apply to every loan. Ask Mike Perc Ior

UDC, he said, was an attractive company for a number of reasons, with sirong management, a leading market them.
position and a disciplined approach to f,rancing, "whish means it has grown even in challenging times when
other non-bank financing companies have failed". The comment stream

UDC was a stategic addition to HNA Capital, a division of the HNA Group. "UDC provldes a platform for HNA Recent comments Edilors'choice
to grow in this part of the world."
How about this guy he rents in Auckland, he seems tc
ln terms of clearing ihe various regulatory approvals, these include Overseas lnvesAnent Office approval and be doing OK, and finds the Auckland market a bit rich for
also approval from the Reserue Bank for HNA as the new owner. him.. httpr /vww.nzherald...
swapcrate on: Median-house prices slipped in'11 re.-.
Fast said that an application to purchase UDC had been lodged with the OlO. "As is usual with an application of
this nature we expecl no further response from the OIO at this stage."

ln terms ofthe RBNZ, Fastsaid the companv had rn(e-rta!teor 6loplcs Donl let this charl mislead you. This represents all those
beenincontactwlththecentralbankandwasinthe migrants who come direcfly to join our workforce on

orocess of comoletino its submission. Business UDC Finance ANZ RBNZ some sort of work or...

"We will naturally be providing lhe Reserue Bank ot Ip Trailer Services HNA Group OIO Advisor on: A blueprint is Trn for hou, the Greens ...
S&P Global Ratings Asset Finance
New Zealand with all the information it requires to I am eternally grateful that property investors are taking
over the reigns from our government as the biggest
process our submission-" rental property holder in...
TainuiBabe on: Median house prices slipped in 11 r...
sharing more on its plans 'at the appropriate Personal Finance Europe Finance company
time' mmpany sale China bank securitisation

Fastsaid the company would be sharing more Bob Fast Why not? I have a house and I feel sorry ficr my kids,

information on irs plans for UDC *at the appropriate and fellow NZers who cant get on the ladder. Prices are

time". obscene at 10-t3 times...

shlapcrate :n: t$Tlral l.rouse price: slippcd 11 re::l
in
Bui he did say that HNA intends to retain UDC's management team and employees, who will run the company
largely in line witlr how it operates today. Additional "capabilities" that are currenlly provlded by ANZ as owner You forget that as depositor funds are moved from bank
will be replaced.
to bank, lhis also affects individual bank margins and

their asset books. For...

'The UDC team will be reinforced with additional expertise as required- Our intention is to enable the business TailulBabe on: llledian house prices slipped in 11 r-..
to operate as an independent entity and following the close of the transaction, UDC Finance will remain a
slandalone company within the HNA Group." Sony, patenfly not bue in this instance. The LVR rules
have nothing to do wilh bank capital adequacy. lnvestor
One key question mark about the proposed deal with HNA is how UDC would be financed in future. lt has been loans can move ftom...
a major issuer ofdebentures to the public in the past. As ofthe end oflastyear it held about $1.46 billion in MisterB on: Median.house prices slipped in 11 regio-..
secured investments from the public.
New LVR rules can be applied when lhe banks are
The ANZ and UDC have indicated that as part of the sale there will at some stage be a meeting for the about being forced to raise capital in order to maintain a safe
.13,500 debenture holders to vote on winding up the existing debenture plan. level ofrisk in the eventofa...
TainuiBabe on: Median house prices slipped in 11 r...

While not going into detail on the HNAJTIP plans for UDC's funding, Fast said that UDC was "expected to be So the ghost houses don't cont, why. "hey, you know I
funded through a securitisation program and a debeniures programme". cant eat your ghost houses bro' Anyway - think
fundamentals. ffs not all supply...
ln terms of what HNA ownership will bring for UDC, Fast said HNA invested in and supported the buslnesses it MbterB on: Mcdian house prices slipped in 11 regio..,
buys.

https://www.inierest.co.nzlbusiness/8763Zchinese-conglomerate-hna-plans-place-nz-finance-com pany-udc-under-wing-its-large z4