GE to Sell Energy Financing Business -- WSJ
August 09 2018 - 3:02AM
Dow Jones News
By Allison Prang
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (August 9, 2018).
General Electric Co. has struck a deal to sell another part of
GE Capital, this time selling its energy debt financing business to
Starwood Property Trust Inc. for $2.56 billion.
Starwood said Wednesday it agreed to buy GE Capital's Energy
Project Finance Debt Business. The deal includes unfunded loan
commitments of $400 million.
Starwood said the unit would complement its Starwood Energy
Group, founded in 2005, which makes energy infrastructure
investments.
GE has been shrinking its GE Capital business for years. It was
once considered a systemically important financial institution in
the U.S., but shed that designation in 2016 as the company divested
several parts of the business.
This year, GE said it was looking to substantially reduce the
size of GE Capital's energy and industrial businesses over the next
24 months.
GE has also been working on getting out of other operations
outside of GE Capital. The Wall Street Journal reported late last
month that GE had hired an investment bank to auction off parts of
GE Digital, its software division. GE also agreed to sell its
industrial-engines unit and its railroad division.
Shares of GE closed down 0.8% in Wednesday trading. Shares of
Starwood fell 3.7%.
Write to Allison Prang at allison.prang@wsj.com
(END) Dow Jones Newswires
August 09, 2018 02:47 ET (06:47 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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