GE To Sell Japan Commercial Lending, Leasing Business To Sumitomo For $4.8 Bln

(RTTNews) - General Electric Co. (GE) Tuesday said it has signed an agreement to sell its commercial lending and leasing business in Japan, including Capital Finance, Fleet Service and Vendor Finance, to Sumitomo Mitsui Finance and Leasing or SMFL, a member of Sumitomo Mitsui Financial Group.

The transaction includes employees of the business and represents aggregate GE ending net investment or ENI of around $4.6 billion. The sale price is about $4.8 billion.

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.

At the same time, GE is focusing on its high-value industrial businesses and is selling most of GE Capital's assets.

GE will retain the financing verticals that relate to its industrial businesses. When completed, today's transaction will contribute $0.6 billion of capital to the overall target of approximately $35 billion of dividends expected to be paid to GE under this plan.

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.