General Electric lifted its selldown to $US63 billion in 3 months when it announced the disposal of vehicle fleet finance & management businesses in 4 countries yesterday.
The Australian & New Zealand part of the deal makes up about 25% of the business sold to Element Financial Corp of Canada for $US6.9 billion. Element bought GE’s Canadian fleet business in 2013. This time it’s also bought GE’s US & Mexican fleet management businesses and has an alliance with BNP Paribas SA subsidiary Arval, which has bought the European business. The US & Mexico transaction is expected to close I the third quarter, the Australia & NZ and Arval transactions in the fourth quarter.
GE Capital Fleet Services provides commercial car & truck financing and fleet management services for over 1.5 million leased, serviced & managed vehicles around the world.
GE confirmed its return to an industrial focus on 10 April, starting 2 years of planned disposals with the sale of GE Capital Real Estate assets for $US26.5 billion, most of that to funds managed by Blackstone Group LP.
Element will increase its total assets to $C21 billion on completion of these transactions. It will finance $C2.7 billion from subscription receipts, subordinated convertible debentures & preferred shares issued on 29 May and the $C5.9 balance from an increase in its senior credit facility.
Attribution: Company releases.