Why is ANZ Bank Ltd (ANZ) in a trading halt
The bank in the spotlight is clearly ANZ which recommences trading on Thursday and while we’re confident it will have no issues raising the $3.5bn under $19 the big question is where will the stock re-open, anything under $20 looks attractive and especially sub $19.50. MM likes this strategic move by ANZ and the price paid for SUN’s banking division looks fair to us, a 1.3x multiple to book value is pretty much in line with ANZ’s 1.2x. The new larger ANZ will still be around 40% of CBA ‘s size but after consolidating its business to become far more Australian focused we can see a blue sky for Shayne Elliott et al as they say good riddance to the bank’s previous poor foray into Asia.
- In-line with our view today on the banking sector MM likes ANZ below $20, a move that will see ANZ over 30% below its 2021 high.
MM likes ANZ into weakness around $20, around 7% lower
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