FAIRFIELD, Conn.--(BUSINESS WIRE)--GE (NYSE:GE) has entered into an agreement with Banca IFIS S.p.A to sell its shares in GE Capital Interbanca S.p.A in Italy. The transaction includes employees of the business and represents ending net investment (ENI) of approximately US$3.7 billion as of the end of the first quarter of 2016. The transaction is subject to customary regulatory approvals and is expected to close around the end of 2016.
GE Capital Interbanca in Italy provides commercial lending, factoring, and lease financing products to smaller and mid-sized companies.
“As we continue to execute on our strategy to sell our financing businesses that aren’t linked to GE, the Italian platform is our last major European transaction,” said GE Capital Chairman and CEO Keith Sherin. “We are pleased to reach agreement with Banca IFIS, a growing bank with complementary products and customers, who will continue to serve our Italian customers as they grow,” he added.
As previously announced, GE is focusing on its high-value industrial businesses and is selling most GE Capital assets. GE will retain the financing verticals that relate directly to GE’s industrial businesses.
Since the announcement in April, 2015, GE Capital has signed agreements for the sale of approximately US$189 billion of businesses and has closed approximately US$168 billion of those transactions. GE Capital plans to have largely completed the process of selling approximately $200 billion of GE Capital businesses not linked to GE by the end of 2016. GE Capital believes it is on track to deliver about $35 billion of dividends to GE under this plan, subject to regulatory approval.
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About Banca IFIS
The Banca IFIS Group (IF:IM) is the only independent banking group in Italy that specialises in the segment of trade receivables, distressed retail loans and tax receivables. The brands through which the Group operates are: Banca IFIS Impresa (dedicated to trade finance loans to SMEs operating on the Italian market and companies expanding abroad or foreign companies dealing with Italian customers); Banca IFIS Pharma (trade finance loans to the main suppliers of local healthcare units and a business unit dedicated to financing for Pharmacies); Banca IFIS NPL Area (non-performing loans sector, together with CrediFamiglia, which specialises in the settlement of financial debts); Fast Finance (focusing on tax receivables); IFIS Finance (financial solutions for companies operating on the Polish market). IFIS is present on the retail market with the rendimax savings account and the contomax current account. Listed on the Star Segment of Borsa Italiana, the Banca IFIS Group is an innovative and steadily growing business.
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