Daily News: November 9, 2015

GE Sells A&NZ Lending/Leasing Portfolios to Bain Capital Affiliate


GE has reached an agreement to sell GE Capital’s Commercial Lending and Leasing portfolios in Australia and New Zealand (A&NZ) to Sankaty Advisors, the global credit affiliate of Bain Capital, advised and partially financed by Deutsche Bank.

The transaction includes about US$1.7/A$2.4 billion in ending net investment (ENI). Terms of the transaction were not disclosed.

During the past eight months, GE Capital has signed agreements to sell four A&NZ consumer and commercial financing businesses, including today’s transaction. All transactions are expected to close by the end of the first quarter of 2016, subject to customary regulatory and closing conditions.

“Combined, these transactions total about US$9/A$12.6 billion of ENI, and when closed, will complete the sale of all of GE Capital’s businesses in A&NZ,” said Keith Sherin, GE Capital chairman and CEO. “Thanks to the remarkable effort of our team, we developed great customer relationships in the market. Our presence has served as an important part of GE and delivered great results for over 20 years.”

As previously announced, GE is executing on a strategy to create a simpler, more valuable company by reducing the size of its financial businesses through the sale of most GE Capital assets and by focusing on continued investment and growth in its world-class industrial businesses. GE will retain the financing businesses that relate directly to GE’s industrial businesses.

When completed, today’s transaction will contribute approximately US$0.1 billion of capital to the overall target of approximately US$35 billion of dividends expected to be paid to GE under the disposition plan (subject to regulatory approval).

Sherin added, “We continue to make strong progress in our efforts to reduce the size of GE Capital. To date, we have signed agreements to sell approximately $128 billion of GE Capital, more than 60 percent of our overall plan.”

The transaction for the Commercial Lending and Leasing portfolios is expected to close in the fourth quarter, subject to customary closing conditions. Morgan Stanley provided financial advice and King & Wood Mallesons and Minter Ellison provided legal advice.