FAIRFIELD, Conn.--(BUSINESS WIRE)--GE [NYSE:GE] has completed the previously announced sale of its European Sponsor Finance business, representing aggregate ending net investment (ENI) of approximately US$2.1 billion, to Sumitomo Mitsui Banking Corporation Europe (SMBCE). GE has also closed the sale of a US$3.7 billion portfolio of loans from its UK home lending business to Kensington Mortgage Company Limited, a company controlled by Blackstone Tactical Opportunities and TPG Special Situation Partners. In addition, year-to-date, GE has closed about US$30 billion in previously announced GE Capital Real Estate sales.
“We are pleased to complete the sale of the European Sponsor Finance business to SMBCE. In addition, with the closing of our third loan portfolio sale this year, we have reduced the size of our UK home lending business by nearly 50 percent to less than US$7 billion,” said Keith Sherin, GE Capital chairman and CEO. “These closings represent important milestones as we continue to execute on our plan to sell most of the assets of GE Capital,” added Sherin.
As previously announced, GE is embarking on a strategy to create a simpler, more valuable company by reducing the size of its financial businesses through the sale of most GE Capital assets and by focusing on continued investment and growth in its world-class industrial businesses. GE and its Board of Directors have determined that current market conditions are favorable to pursue these dispositions. GE will retain the financing businesses that relate directly to GE’s industrial businesses.
With the addition of the UK home lending portfolio, the total for GE Capital 2015 announced sales is approximately US$90 billion.
“We are pleased with the progress we are making to reach and close agreements for our businesses and assets. The speed and value we have achieved is a testament to the hard work of our GE Capital teams around the world,” concluded Sherin.
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