Sanyo Credit Would Add Office/IT Small-Ticket Leasing, Rental Services and Specialty Loans to GE Portfolio
TOKYO--(BUSINESS WIRE)--GE Commercial Finance has decided to launch a tender offer for 100% of the shares of Japan's Sanyo Electric Credit Co., Ltd., a small ticket leasing and specialty loan business that focuses on office and IT equipment and industry-specific loans throughout Japan. Sanyo Electric Credit complements GE Commercial Finance's existing strength in medium and large ticket leasing and loans, via its GE Capital Leasing Corporation.
The offer is supported by Sanyo Electric Credit's Board of Directors and is conditioned on the tender of least two thirds of Sanyo Electric Credit's shares. GE's all-cash offer for Sanyo Electric Credit is approximately US$1.1 billion. The deal is expected to close in the second quarter of this year.
"Sanyo Electric Credit will be a valuable addition to what we can provide business customers at all levels," said John Flannery, president and CEO, GE Commercial Finance Asia. "It significantly enhances the breadth and depth of our financial services to all kinds of Japanese businesses.
"Strengthening our position in Japan, one of the world's most important commercial markets, is a strategic priority for GE," Flannery noted. "We've actively expanded our investments and alliances in Japanese commercial finance since we started with GE Capital Leasing in 1999. GE has a 100 year history of doing business in Japan, and this represents a very important development."
About GE Commercial Finance
GE Commercial Finance is the business-to-business finance unit of General Electric. With deep industry expertise and lending, leasing and financing services of every kind, GE Commercial Finance plays a key role in helping its customers grow. Conducting business in 35 countries, GE Commercial Finance has assets of over US$230 billion and is headquartered in Norwalk, Connecticut, USA. For more information, visit the web site at www.gecommercialfinance.com
About GE
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. It has operated in Japan for more than 100 years and employs around 8,000 people. For more information, visit the company's web site at www.ge.com.
This news release contains forward-looking statements based on management's current expectations and is subject to uncertainty and changes in circumstances. Actual results may differ due to a variety of factors including the ability to consummate the transaction, the ability of GE Commercial Finance to successfully integrate Sanyo Electric Credit's operations and employees and the ability to realize anticipated synergies and cost savings.