GE Capital Reportedly In Talks to Sell its Australian Businesses

0
GE Capital Reportedly In Talks to Sell its Australian Businesses
By General Electric Company (w:File:General_Electric_logo.svg) [Public domain], via Wikimedia Commons

GE Capital is negotiating with Sankaty Advisors and Deutsche Bank regarding the sale of its lending and leasing businesses in Australia, according to a report from the New York Times based on information from a person familiar with the situation.

The report indicated that GE Capital’s negotiation involves the remaining portion of its series of auctions for its Australian financial assets this year, which included its consumer lending and fleet financing. Morgan Stanley is managing the auction for GE Capital.

[Exclusive] DG Value Underperforms In H1, Sees Growing Number Of Distressed Opportunities

Dov Gertzulin's DG Capital has had a rough start to the year. According to a copy of the firm's second-quarter investor update, which highlights the performance figures for its two main strategies, the flagship value strategy and the concentrated strategy, during the first half of 2022, both funds have underperformed their benchmarks this year. The Read More

GE Capital selected Sankaty and Deutsche Bank as preferred final bidder

The source said GE Capital selected Deutsche Bank and Sankaty, the distressed debt investing affiliates of Bain Capital, as its final preferred bidder for its Australian businesses with an estimated book value of around $1.8 billion. These businesses included the private plane financing, equipment rental, lending for working capital and leverage loans businesses.

GE Capital’s negotiations with Deutsche Bank and Sankaty is ongoing for more than a week now, according to the person, who requested anonymity. Sankaty is expected to manage the businesses while Deutsche Bank will provide advice and financing for the acquisition if the parties reached agreement.

According to the source, Lone Star, a US-based private equity firm specializing in distressed investments will be given the opportunity to acquire GE Capital’s Australian businesses if its negotiation with Deutsche Bank and Sankaty falters.

GE Capital previous transactions

General Electric has been reducing the size and complexity of its business o