] GE Capital has completed the sale of its remaining 20 percent stake in Hyundai Capital Services, Hyundai Motor Group confirmed in a regulatory filing on Oct. 17.
GE Capital sold its stake to two special purpose entities set up solely for the purchase, Hyundai Motor
According to sources, the transaction is valued at approximately 600 billion won (US$529.43 million).
GE Capital also confirmed its exit and reaffirmed its restructuring strategy to focus on large industrial products by slimming down its consumer finance sector globally.
Headquarters of Hyundai Capital in southern Seoul. The Investor
The latest buyout puts an end to the 12-year-old joint venture, which was established in 2004 when GE Capital invested 620 billion won for a 43.3 percent stake in the auto conglomerate’s finance arm. Last December, the group’s automakers Hyundai Motor and Kia Motors bought back GE Capital’s 23.3 percent stake in the firm for 703.1 billion won.
Meanwhile, Hyundai Motor declined to reveal details on GE Capital’s stake in Hyundai Card, the auto group’s credit card business, saying nothing has been decided.
GE Capital plans to sell its entire 43 percent stake in Hyundai Card, which is valued at around 760 billion won. According to reports, the finance arm of GE plans to sell its stake to several private equity funds by splitting the shares into blocks of 10 percent each. Local PEF H&Q Asia Pacific Korea and two other global PEFs, including Affinity Equity Partners and Pacific Alliance Group, are reportedly interested in the deal.
By Ahn Sung-mi (email@example.com