TAIPEI, Taiwan--(BUSINESS WIRE)--Jan. 23, 2006--GE Consumer Finance, the global consumer lending unit of the General Electric Company (NYSE: GE), announced today it has agreed to make a strategic investment in Cosmos Bank, a major banking and consumer finance player in Taiwan, forming a strategic alliance.
Under the agreement, GE Consumer Finance will acquire a 10% stake in Cosmos through a share subscription of 197 million common shares, at an aggregate price of $86 million. GE Consumer Finance will retain rights to increase its total stake in Cosmos to 24.9% at a later point through a convertible bond structure. The transaction is subject to regulatory and shareholder approvals.
Under the terms of the strategic alliance, Chairman Sheng-fa Hsui and Vice Chairman Ken S.J. Hsui will remain in their roles. GE Consumer Finance and Cosmos will share management responsibilities of the Bank through a joint management committee. GE Consumer Finance will appoint two representatives to the Bank's Board of Directors, and will place senior executives into the Bank to assist in managing day-to-day operations.
"This partnership gives GE Consumer Finance the opportunity to execute on our growth strategy in Asia by gaining a significant platform from which to expand in Taiwan," said Yoshiaki Fujimori, President and CEO of GE Consumer Finance Asia.
"We welcome GE Consumer Finance's investment in Cosmos Bank. This share subscription will inject new capital into the bank to increase capital requirements, enabling it to grow. GE Consumer Finance also brings global expertise and highly regarded GE competencies in general management, IT, and consumer lending which will strengthen our presence in the Taiwan market," said Chairman Hsui. "We are very pleased that Cosmos' existing customers and Taiwanese consumers and businesses will now have the benefit of GE's presence in our business."
Cosmos commenced operations as a commercial bank in 1992 and later transformed into a niche consumer finance bank with assets of approximately US$7.9 billion. Cosmos has 63 branches, 8 corporate centers, and a strong electronic network and provides a broad range of banking and financial services, including deposits, personal loans, mortgages, auto loans and credit cards.
ABOUT GE CONSUMER FINANCE
With more than $163 billion in assets, GE Consumer Finance, a unit of General Electric Company, is a leading provider of credit services to consumers, retailers, and auto dealers in 47 countries around the world. GE Consumer Finance, based in Stamford, Connecticut (USA), offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans, and credit insurance. More information can be found at http://geconsumerfinance.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. For more information, visit the company's Web site at www.ge.com.
ABOUT COSMOS
Cosmos Bank is a full service bank that established its business in Taiwan in 1992. It is a pioneer of the cash card product in Taiwan and a leading provider of consumer finance products. Cosmos Bank has assets of $8.7 billion. The Bank has strong distribution channels, including 63 branches, 8 corporate centers, about 200 auto lending machines, and over 400 ATMs and ADMs (Auto Deposit Machines). More information on Cosmos Bank can be found at www.cosmosbank.com.tw
Contacts For US GECF
Bob Rendine, 203-585-2084
[email protected]
or
For Asia GECF
Jin Montesano, +662 627 4445
[email protected]
or
For Cosmos Bank, Taiwan
Kung-Liang Shih, +8862 2326 3797
Cristy Williams
[email protected]
678.518.2596