GE to Sell Shares in Hyundai Capital Services to Hyundai Motor Company and Kia Motors

GE (NYSE: GE) announced today that it has signed an agreement to sell a 23.3% stake of Hyundai Capital Services (HCS) to Hyundai Motor Company and Kia Motors as part of a broader deal to exit its entire 43.3% ownership in HCS over the following months. Hyundai Capital is an 11 year old joint venture between Hyundai Motor Company and GE Capital that provides consumer financial products, including auto financing, auto leasing services, personal loans and home mortgages. Hyundai Motor Company and Kia Motors are global leaders in the vehicle industry.

The transaction represents aggregate GE ending net investment (ENI) of approximately US$0.9 billion.

“As we continue to sell most of the assets of GE Capital, we are working with our joint venture partners such as Hyundai to find the solutions that work best for all parties,” said Keith Sherin, GE Capital chairman and CEO. “We’re pleased that we were able to take this step toward a longer term strategy to fully exit our stakes in Hyundai Capital and Hyundai Card. Hyundai has been a great partner over the last 11 years providing value for customers,” he added.

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 broader transaction is subject to customary regulatory approval and is expected to close in April 2016. Goldman Sachs provided financial advice and Weil Gotshal and Shin & Kim 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 Hyundai Capital Services
Hyundai Capital Services is Korea’s No. 1 provider of consumer financial products, including auto financing, auto leasing services, personal loans and home mortgages. Established in 1993, the company is a financial service unit of Hyundai Motor Group. Hyundai Capital has a growing presence in North America, Europe and Asia. www.hyundaicapital.com

About Hyundai Motor
Established in 1967, Hyundai Motor Company is committed to becoming a lifetime partner in automobiles and beyond. The company leads the Hyundai Motor Group, an innovative business structure capable of circulating resources from molten iron to finished cars. Hyundai Motor has eight manufacturing bases and seven design & technical centers worldwide and in 2014 sold 4.96 million vehicles globally. With almost 100,000 employees worldwide, Hyundai Motor continues to enhance its product line-up with localized models and strives to strengthen its leadership in clean technology, starting with the world’s first mass-produced hydrogen-powered vehicle, ix35 Fuel Cell.

About Kia Motors
Kia Motors Corporation was founded in May 1944 and is Korea’s oldest manufacturer of motor vehicles. From humble origins making bicycles and motorcycles, Kia has grown – as part of the dynamic, global Hyundai-Kia Automotive Group – to become the world’s fifth largest vehicle manufacturer. Today, Kia produces more than 1.4 million vehicles a year at 14 manufacturing and assembly operations in eight countries. These vehicles are sold and serviced through a network of more than 3,000 distributors and dealers covering 172 countries. The Corporation has more than 40,000 employees and annual revenues of more than US$17 billion.

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