Sumitomo Mitsui Financial To Sell SMBC Rail To ITE Management L.P For Undisclosed Sum

(RTTNews) - Sumitomo Mitsui Financial Group (SMFG) on Tuesday announced an agreement to sell SMBC Rail Services LLC or SMBC RS from its unit SMBC Americas Holdings, Inc. to an affiliate of investment firm ITE Management L.P.

The financial details of the transaction have not been divulged.

Upon the closing of this transaction, the SMBC RS railcars and certain other assets of SMBC RS will be transferred to American Industrial Transport, Inc. or AITX.

AITX is a railcar services solution provider and the deal is expected to add over 50,000 additional railcars to AITX's fleet, along with an experienced team and longstanding customer relationships.

The divestiture is expected to support the financial group's Medium Term Management Plan and commitment to focus on its U.S. business, including its new digital bank, Jenius Bank.

In pre-market activity, SMFG shares are trading at $9.73, down 0.71% on the New York Stock Exchange.