GE Completes Sale of Consumer Finance Business in Australia and New Zealand
November 25 2015 - 9:01AM
Business Wire
GE (NYSE:GE) announced today that it has completed the sale of
its Australia and New Zealand (A&NZ) consumer finance business,
representing aggregate ending net investment (ENI) of approximately
US $4.3 billion, to a consortium made up of Värde Partners, KKR and
Deutsche Bank.
“We are pleased to complete the sale of our consumer lending
business in A&NZ,” said Keith Sherin, GE Capital chairman and
CEO. “Combined with the recently announced agreement to sell our
commercial lending business in A&NZ, this is a big step in the
complete exit of GE Capital from the region,” added Sherin.
As previously announced, GE is embarking on a strategy to focus
on its high-value industrial businesses and is selling most GE
Capital assets. GE and its Board of Directors have determined that
current market conditions are favorable to pursue disposition of
these assets. GE will retain the financing verticals that relate to
GE’s industrial businesses.
The A&NZ consumer transaction releases approximately US$1.7
billion of capital. GE Capital believes it is on track to deliver
about US$35 billion of dividends to GE under this plan, as
previously announced (subject to regulatory approval). Changes in
the transaction size were driven by FX, normal portfolio movement,
and other adjustments during the sign to close period.
Sherin concluded, “We wish our colleagues in the A&NZ
consumer business team a successful future as they join their new
partners in launching the business under the new owners as Latitude
Financial Services.”
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Investor:Matt Cribbins, +1
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