GE Sells-Off Down-Under Consumer Lending Business
The deal represents an aggregate ending net investment of approximately $4.3 billion.
“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,” said Keith Sherin, GE Capital chairman and CEO.
The move releases approximately $1.7 billion of capital and is part of GE’s strategy “to focus on its high-value industrial businesses and sell-off most of GE Capital assets,” the company said in a statement.
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.”
With the A&NZ consumer transaction GE Capital “believes it is on track to deliver about $35 billion of dividends to GE under this plan,” the company said. “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.”