GE Receives Binding Offer from Cerberus Capital Management for Sale of Consumer Finance Business in France
June 23 2016 - 2:15AM
Business Wire
- Transaction Aligns with GE’s Strategy
to Create Simpler, More Valuable Industrial Company
- GE Capital’s Announced Sales Now Total
Approximately US$177 Billion (ENI)
GE (NYSE: GE) announced today that it has received a binding
offer from an affiliate of Cerberus Capital Management, L.P. for
the potential sale of its French consumer finance business, GE
Money Bank, and its operations in the French Overseas Territories
(the DOMs). The sale would represent ending net investment (ENI) of
approximately $4.6 billion as of the end of the first quarter of
2016, and excludes the platform’s approximately $2 billion prime
mortgage portfolio which is being sold separately. The proposed
transaction will be submitted to business works councils for their
information and consultation. The completion of the transaction is
subject to customary conditions including regulatory and antitrust
approvals and is targeted to close in the fourth quarter of
2016.
“As we continue to execute on our strategy to sell GE Capital’s
businesses that aren’t linked to GE, with the remainder of these
transactions primarily in Europe, we’re pleased to announce this
agreement for the potential sale of GE Money Bank France and the
DOMs to Cerberus,” said Keith Sherin, GE Capital chairman and CEO.
“The business is well-established in consumer finance and has made
a substantial contribution to GE Capital’s European operations.
Cerberus has a growing profile as a European financial services
investor with MCS, a debt servicing business in France, and BAWAG
P.S.K., a retail bank in Austria.”
As previously announced, GE is focusing on its high-value
industrial businesses and is selling most of GE Capital’s assets.
GE will retain the financing verticals that relate directly to GE’s
industrial businesses.
Including this transaction, and since the announcement in April,
2015, GE Capital has signed agreements for approximately US$177
billion and has closed approximately US$156 billion of those deals.
GE Capital plans to sell approximately $200 billion of GE Capital
businesses worldwide and expects to have largely completed the
process by the end of 2016. GE Capital believes it is on track to
deliver about $35 billion of dividends to GE under this plan,
subject to regulatory approval.
About GE
GE (NYSE: GE) is the world’s Digital Industrial Company,
transforming industry with software-defined machines and solutions
that are connected, responsive and predictive. GE is organized
around a global exchange of knowledge, the "GE Store”, through
which each business shares and accesses the same technology,
markets, structure and intellect. Each invention further fuels
innovation and application across our industrial sectors. With
people, services, technology and scale, GE delivers better outcomes
for customers by speaking the language of industry. www.ge.com
GE’s Investor Relations website at www.ge.com/investor and our
corporate blog at www.gereports.com, as well as GE’s Facebook page
and Twitter accounts, including @GE_Reports, contain a significant
amount of information about GE, including financial and other
information for investors. GE encourages investors to visit these
websites from time to time, as information is updated and new
information is posted.
About Cerberus Capital Management, L.P.
Cerberus is a leading private investment firm, currently
managing approximately $31 billion for many of the world’s most
respected investors. Cerberus directs its global investment
strategies from its headquarters in New York City and its European
investment offices in Holland and maintains a network of advisory
offices throughout the United States, Europe, and Asia. Cerberus
invests in multiple sectors, through a variety of investment
strategies, in countries around the world.
Caution Concerning Forward-Looking Statements:
This document contains "forward-looking statements" – that is,
statements related to future events that by their nature address
matters that are, to different degrees, uncertain. For details on
the uncertainties that may cause our actual future results to be
materially different than those expressed in our forward-looking
statements,
see ge.com/investor-relations/disclaimer-caution-concerning-forward-looking-statements as
well as our annual reports on Form 10-K and quarterly reports on
Form 10-Q. We do not undertake to update our forward-looking
statements. This document also includes certain forward-looking
projected financial information that is based on current estimates
and forecasts. Actual results could differ materially.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160622006571/en/
GEInvestors:Matt Cribbins, +1
203-373-2424matthewg.cribbins@ge.comorMedia:Ned Reynolds, +1
203-837-0699ned.reynolds@ge.com
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Mar 2024 to Apr 2024
GE Aerospace (NYSE:GE)
Historical Stock Chart
From Apr 2023 to Apr 2024