Date
19 August 2017
GE is looking to exit its auto finance and credit card joint ventures in South Korea as part of efforts to move away from consumer finance globally. Photo: Bloomberg
GE is looking to exit its auto finance and credit card joint ventures in South Korea as part of efforts to move away from consumer finance globally. Photo: Bloomberg

GE seeks to exit S Korea finance joint ventures: WSJ

General Electric Co. is in early talks to sell its stakes in its South Korean auto-financing and credit-card businesses, the Wall Street Journal reported Thursday, citing people familiar with the matter.

A sale could fetch more than US$1 billion for the US-based conglomerate, which is moving away from consumer finance globally, according to the report.

If a transaction goes through, it will unwind a partnership that began 10 years ago between GE and Hyundai group.

GE holds 43 percent stakes in the auto-financing and credit-card joint ventures in Korea. The stakes had a book value of 2.25 trillion won (US$2.1 billion) at the end of 2013, and are likely to fetch at least half their book value based on comparable company valuations, the report said.

Talks are currently taking place between GE and Hyundai, which has a right of first refusal over the stakes, it said.

– Contact us at [email protected]

RC

EJI Weekly Newsletter

Please click here to unsubscribe