GE Money Agrees To Sell Its Consumer Finance Business In Japan To Shinsei Bank
Proposed transaction is in line with objective to redeploy capital for higher returns
TOKYO, Japan – July 11, 2008 – GE Money, the consumer financial services unit of the General Electric Company (NYSE: GE), announced today it has signed an agreement to sell its Japanese consumer finance business, which includes the Lake personal loan business, wholly owned credit cards and mortgages under GE Consumer Finance Co Ltd and its subsidiaries, to Shinsei Bank, a leading diversified Japanese bank. The transaction, which is subject to closing conditions, including regulatory approvals, is valued at Y580 billion (US$5.4 billion) and is expected to close in the third quarter of 2008.
Under the terms of the agreement, in addition to acquiring GE Money’s loan, credit card, and mortgage businesses, Shinsei Bank plans to retain and work closely with GE employees in these businesses as part of its strategy to expand its position in the Japanese consumer credit marketplace.
Commenting on the transaction, William H. Cary, President and CEO of GE Money, said, “In an extremely challenging environment, we have completed an agreement that fully meets our core strategic objectives: giving our Japanese business the opportunity to work with a partner committed to investing in Japan, and allowing GE Money and GE to redeploy its capital to areas which will generate strong sustainable long-term growth and returns for our shareowners.
ABOUT GE MONEY With more than $200 billion in assets, GE Money, a unit of General Electric Company (NYSE: GE) is a leading provider of retail banking and credit services to consumers, retailers, and auto dealers in 55 countries around the world. With more than 130 million global customers, GE Money, headquartered in London, UK, offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, debt consolidation and home equity loans, and credit insurance. More information can be found at http://global.gemoney.com/.
Proposed transaction is in line with objective to redeploy capital for higher returns
TOKYO, Japan – July 11, 2008 – GE Money, the consumer financial services unit of the General Electric Company (NYSE: GE), announced today it has signed an agreement to sell its Japanese consumer finance business, which includes the Lake personal loan business, wholly owned credit cards and mortgages under GE Consumer Finance Co Ltd and its subsidiaries, to Shinsei Bank, a leading diversified Japanese bank. The transaction, which is subject to closing conditions, including regulatory approvals, is valued at Y580 billion (US$5.4 billion) and is expected to close in the third quarter of 2008.
Under the terms of the agreement, in addition to acquiring GE Money’s loan, credit card, and mortgage businesses, Shinsei Bank plans to retain and work closely with GE employees in these businesses as part of its strategy to expand its position in the Japanese consumer credit marketplace.
Commenting on the transaction, William H. Cary, President and CEO of GE Money, said, “In an extremely challenging environment, we have completed an agreement that fully meets our core strategic objectives: giving our Japanese business the opportunity to work with a partner committed to investing in Japan, and allowing GE Money and GE to redeploy its capital to areas which will generate strong sustainable long-term growth and returns for our shareowners.
ABOUT GE MONEY With more than $200 billion in assets, GE Money, a unit of General Electric Company (NYSE: GE) is a leading provider of retail banking and credit services to consumers, retailers, and auto dealers in 55 countries around the world. With more than 130 million global customers, GE Money, headquartered in London, UK, offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, debt consolidation and home equity loans, and credit insurance. More information can be found at http://global.gemoney.com/.
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