Sale of Motor Vehicle Dealer Finance and Novated Leasing

ASX
Release

28 June 2021



WESTPAC SELLS MOTOR VEHICLE DEALER FINANCE AND NOVATED LEASING BUSINESSES

Westpac today announced that it will sell its motor vehicle dealer finance and novated leasing
businesses to Angle Finance, a portfolio company of Cerberus Capital Management, L.P
1
.

As part of the sale, Westpac will transfer:

 Auto dealer and introducer agreements together with wholesale dealer loans of
approximately $1 billion;
 Strategic alliance agreements with vehicle manufacturers; and
 Novated lease origination capability and related agreements.

Westpac will retain its existing retail auto loans of around $10 billion originated by the businesses
being transferred. The loans will run down in the normal course of business over the life of those
loans. Westpac will also progressively cease new retail auto loan originations from these three
channels with customers still able to use the Group’s Consumer and Business lending products
to help buy motor vehicles.

The sale is subject to the final value of the portfolio transferred and will generate an accounting
gain on sale. It is expected to add around 6 basis points to Westpac’s common equity tier 1
capital ratio
2
.
 
“This sale brings certainty for our customers, new opportunities for our people and continues the
progress we are making on becoming a simpler bank,” said Westpac Group Chief Executive,
Specialist Businesses & Group Strategy, Jason Yetton.

“Angle Auto Finance is committed to the Auto Finance industry and will provide the capability and
strategic focus to grow and improve the business,” said Mr Yetton.

Completion is expected by the end of the calendar year with the transfer to occur over several
stages to allow for a smooth transition. Completion of the transaction is subject to regulatory
approvals.



 
1
 The business will operate as Angle Auto Finance.
2
 At 31 March 2021 Westpac’s CET1 capital ratio was 12.34%.  Including transactions previously announced but not settled, 
Westpac’s CET1 capital ratio on a proforma basis would be 12.66%.  Including this transaction, Westpac’s proforma CET1 capital 
ratio would be approximately 12.72% at 31 March 2021.
Level 18, 275 Kent Street
Sydney, NSW, 2000

 
 
 
 
 
For further information:

Lisa Parrett Andrew Bowden
Media Relations Investor Relations
M. 0432 933 796 M. 0438 284 863
P. +612 8253 4008
ENDS


About Westpac’s Auto Finance Business
Westpac’s Auto Finance businesses comprises retail auto loans originated through more than
250 auto dealer groups, strategic alliance agreements with three major vehicle manufacturers,
wholesale dealer loans provided to dealers in the form of bailment and other facilities and a
novated leasing business.

About Angle Finance
Angle Finance is a non-bank asset finance company providing leading solutions to businesses
and consumers across Australia. Angle Finance is a portfolio company of Cerberus Capital
Management, L.P, a global leader in alternative investing, and has recruited a highly experienced
management team, invested in the technology platform, and implemented a first-class service
approach with a national reach.

About Angle Auto Finance
Angle Auto Finance will be a non-bank specialised finance business that provides financing
solutions to dealers, novated lease partners, consumers, and businesses across Australia.

About Cerberus
Founded in 1992, Cerberus is a global leader in alternative investing with over USD$55 billion in
assets across complementary credit, private equity, and real estate strategies. We invest across
the capital structure where our integrated investment platforms and proprietary operating
capabilities create an edge to improve performance and drive long-term value. Our tenured
teams have experience working collaboratively across asset classes, sectors, and geographies
to seek strong risk-adjusted returns for our investors.



This document has been authorised for release by Tim Hartin, General Manager &
Company Secretary.