Ally Financial Announces Agreement to Sell Remaining International
Operations
DETROIT, Nov. 21, 2012 /PRNewswire/ --
- Final sale transaction toward strategic plans to repay U.S.
Treasury
- Company focused on further strengthening the U.S. auto
finance and direct banking franchises
Ally Financial Inc. (Ally) today announced that it has reached
an agreement to sell its operations in Europe and Latin
America, as well as its share in a joint venture in
China, to General Motors Financial
Company, Inc. (GM Financial), a wholly-owned subsidiary of
General Motors Co. The transaction is subject to regulatory
approvals and is expected to close in stages during 2013. Ally
will receive an approximately $550 million
USD premium to tangible book value, which for the third
quarter of 2012 was approximately $3.7
billion. Based on the third quarter tangible book value
for the combined operations, Ally would receive approximately
$4.2 billion USD in proceeds from
this transaction.
"In May, we began a process to pursue alternatives for our
international operations in an effort to accelerate repayment plans
for the U.S. Treasury's remaining investment," said Ally Chief
Executive Officer Michael A.
Carpenter. "This transaction represents the third and
final agreement in recent weeks toward those goals, and, combined,
these sales are expected to generate approximately $9.2 billion in proceeds."
Carpenter continued, "Our goals were to find the best solution
for each of the businesses, while also maximizing shareholder
value, and we believe those goals have been achieved. Next, we
are focused on completing each of these transactions and evaluating
options to return capital to the U.S. Treasury.
"Going forward, we remain squarely focused on further
strengthening and growing our leading U.S. automotive services and
direct banking franchises," said Carpenter. "We have strong
momentum in these businesses, and continued successful execution of
our strategic plans will enable these operations to further
thrive."
The transaction includes auto finance operations in Germany, the U.K., Austria, France, Italy, Switzerland, Sweden, Belgium, the
Netherlands, Luxembourg,
Brazil, Mexico, Colombia and Chile, as well as a 40 percent equity stake in
a joint venture in China. The combined operations in
Europe and Latin America represented approximately
$16.1 billion in assets at the end of
the third quarter 2012.
In October, Ally announced agreements to sell its Mexican
insurance subsidiary, as well as its auto finance and deposit
businesses in Canada. With the agreement to sell the
operations in Europe, Latin America and the joint venture stake in
China, Ally will have effectively
exited the international markets. In total, these transactions
are expected to generate proceeds of approximately $9.2 billion, based on third quarter 2012
tangible book value of $7.6 billion,
which reflects a premium of approximately $1.6 billion, or 21 percent.
About Ally Financial
Ally Financial Inc. is a leading
automotive financial services company powered by a top direct
banking franchise. Ally's automotive services business offers a
full suite of financing products and services, including new and
used vehicle inventory and consumer financing, leasing, inventory
insurance, commercial loans and vehicle remarketing
services. Ally Bank, the company's direct banking subsidiary
and member FDIC, offers an array of deposit products, including
certificates of deposit, savings accounts, money market accounts,
IRA deposit products and online checking. Ally's Commercial
Finance unit provides financing to middle-market companies across a
broad range of industries.
With approximately $182 billion in
assets as of Sept. 30, 2012, Ally
operates as a bank holding company. For more information,
visit the Ally media site at http://media.ally.com or follow Ally
on Twitter: @ally.
Contact:
Gina
Proia
646-781-2692
gina.proia@ally.com
SOURCE Ally Financial