As part of General Electric's wider plan to dispose of most of its financial services businesses worldwide, GE has announced that it has completed the sale of its Australia and New Zealand consumer finance business, representing aggregate ending net investment (ENI) of approximately US $4.3 billion, to a consortium made up of Värde Partners, KKR and Deutsche Bank.
“We are pleased to complete the sale of our consumer lending business in A&NZ,” said Keith Sherin, GE Capital chairman and CEO. “Combined with the recently announced agreement to sell our commercial lending business in A&NZ, this is a big step in the complete exit of GE Capital from the region,” added Sherin.
As previously announced, GE is embarking on a strategy to focus on its high-value industrial businesses and is selling most GE Capital assets. GE and its Board of Directors have determined that current market conditions are favorable to pursue disposition of these assets. GE will retain the financing verticals that relate to GE’s industrial businesses.
The A&NZ consumer transaction releases approximately US$1.7 billion of capital. GE Capital believes it is on track to deliver about US$35 billion of dividends to GE under this plan, as previously announced (subject to regulatory approval). Changes in the transaction size were driven by FX, normal portfolio movement, and other adjustments during the sign to close period.
Sherin concluded, “We wish our colleagues in the A&NZ consumer business team a successful future as they join their new partners in launching the business under the new owners as Latitude Financial Services.”
