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Transaction Aligns with GE’s Strategy to Create Simpler, More
Valuable Industrial Company
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GE Capital’s Announced Deals to Date Total Approximately US $154
Billion (ENI)
GE (NYSE:GE) has signed an agreement today to sell its commercial
lending and leasing business in Japan, including Capital Finance, Fleet
Service and Vendor Finance, to Sumitomo Mitsui Finance and Leasing
(SMFL), a member of Sumitomo Mitsui Financial Group. The transaction
includes employees of the business and represents aggregate GE ending
net investment (ENI) of approximately US $4.6 billion. The sale price is
approximately US $4.8 billion.
“We continue to make quick progress on the sale of our international
assets and are pleased to sell this business to a company that is
committed to growth for our customers and employees,” said Keith Sherin,
GE Capital chairman and CEO. “This is our second transaction with the
broader Sumitomo Mitsui Financial Group and we were happy to work with
them again,” he added.
Sumitomo Mitsui Finance and Leasing is one of Japan's largest leasing
companies. It is developing business overseas, including in China,
Southeast Asia and the United States. As previously announced, GE is
embarking on a strategy to focus on its high-value industrial businesses
and is selling most of GE Capital’s assets. GE will retain the financing
verticals that relate to GE’s industrial businesses. When completed,
today’s transaction will contribute approximately US $0.6 billion of
capital to the overall target of approximately US$35 billion of
dividends expected to be paid to GE under this plan (subject to
regulatory approval).
The transaction is subject to customary regulatory approval. It is
expected to close in April 2016. Morgan Stanley acting together with
Mitsubishi UFJ Morgan Stanley Securities provided financial advice and
Nagashima Ohno & Tsunematsu provided legal advice to GE.
About GE
GE (NYSE: GE) is the world’s Digital Industrial Company, transforming
industry with software-defined machines and solutions that are
connected, responsive and predictive. GE is organized around a global
exchange of knowledge, the "GE Store," through which each business
shares and accesses the same technology, markets, structure and
intellect. Each invention further fuels innovation and application
across our industrial sectors. With people, services, technology and
scale, GE delivers better outcomes for customers by speaking the
language of industry. www.ge.com
GE’s Investor Relations website at www.ge.com/investor
and our corporate blog at www.gereports.com,
as well as GE’s Facebook page and Twitter accounts, including
@GE_Reports, contain a significant amount of information about GE,
including financial and other information for investors. GE encourages
investors to visit these websites from time to time, as information is
updated and new information is posted.
About Sumitomo Mitsui Finance and Leasing
Sumitomo Mitsui Finance and Leasing is one of the leading companies in
Japanese leasing industry. SMFL is well positioned to offer optimal
products and services promptly to each of its customers in a wide
spectrum of industries. SMFL also offers its customers the best
financial and business solutions as it makes social contributions to the
environment and regional areas. With its extensive overseas network,
SMFL actively serves the needs of companies entering overseas markets.
SMFL responds to a wide range of customer financial management needs and
offers high-value-added products and services that address customers’
business issues. For more information, please visit www.smfl.co.jp/.
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