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Sydney - National Australia Bank, Australia's top lender, has agreed to sell its commercial vehicle leasing business to a unit of South Africa's Super Group for A$342 million ($402 million).
The sale, which comes as NAB moves out of non-core businesses, is subject to regulatory clearance and the final approval of Super Group's debt funding providers.
The business leases and maintains buses, forklifts, trailers and other equipment.
It had cash earnings of A$6 million in 2006 and contributed A$24 million to NAB's group earnings in the first half of fiscal 2007.
The proceeds of the sale will be used for general funding needs.
NAB said the price reflected a discount to the current carrying value of the assets, as it had stopped depreciating the assets from October 2006.
"Had the assets been fully depreciated the sale would represent a small premium on net assets," the statement said.
NAB Group chief executive officer John Stewart said the business had been a profitable part of the bank since 1997.
Last year, NAB rival ANZ, Australia's third-biggest lender, sold its vehicle fleet leasing and management business for A$379 million to private equity group Nikko Principal Investments Australia.
NAB shares closed up A31c at A$38.60.
- Reuters
