GE Selling Hyundai Capital Shares to Hyundai, Kia
FAIRFIELD — GE has signed an agreement to sell a 23.3 percent stake of Hyundai Capital Services to Hyundai Motor Company and Kia Motors as part of a broader deal to exit its entire 43.3 percent ownership of the consumer HCS. The transaction, which is subject to regulatory approval, represents aggregate GE ending net investment ... Read More »
FAIRFIELD — GE has signed an agreement to sell a 23.3 percent stake of Hyundai Capital Services to Hyundai Motor Company and Kia Motors as part of a broader deal to exit its entire 43.3 percent ownership of the consumer HCS. The transaction, which is subject to regulatory approval, represents aggregate GE ending net investment of approximately $900 million, reported F&I and Showroom.
Hyundai Capital is an 11-year-old join venture between Hyundai Motor Co. and GE Capital. It provides consumer financial products, including auto financing, auto leasing services, personal loans and home mortgages.
“As we continue to sell most of the assets of GE Capital, we are working with our joint venture partners such as a Hyundai to find 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.”
As previously announced, GE is embarking on a strategy to focus on high-value industrial businesses and is selling most of GE Capital’s assets.
On Dec. 3, GE Capital unloaded its transportation finance business to BMO Financial Group. At closing, the business unit, which represents North American’s largest financier to the truck and trailer segment, had net earning assets of about $8.9 million.
When GE completes its sale of its HCS shares, the transaction will contribute approximately $600 million of capital to the overall target of approximately $35 billion of dividends expected to be paid to GE under this plan. The broader transaction is subject to customary regulatory approval and is expected to close in April 2016.
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