Seven years after it set out to do so, Westpac is getting close to finally finishing offloading its vehicle finance receivables.
Resimac yesterday said it agreed to purchase a portfolio of auto loan receivables and leases from Westpac with an expected value at completion in a range from $1.4 billion to $1.6 billion.
“The transaction supports the strategic growth objectives of Resimac’s asset finance division and follows a number of business and portfolio acquisitions in recent years” Resimac said.
The Westpac book will more than double assets under management at Resimac’s asset finance division.
The transaction is expected to complete in first half of 2025 and is not expected to have a material impact on Resimac’s FY25 financial results.
“The sale will finalise Westpac’s divestment of its auto finance business, following the partial sale in 2021” Westpac said.
In 2017 Westpac considered an IPO for this division.