GE has reached an agreement to divest its entire 43% stake in Hyundai Card Co (HCC) to Hyundai Commercial, Affinity Equity Partners, GIC and AlpInvest.
With the proposed divestiture of the 43% ownership, GE will exit HCC, which operates as a joint venture between (JV) GE and Hyundai, and issues credit cards in the South Korean market.
The transaction, which is likely to conclude around the end of February 2017, aligns with GE’s strategy to create simpler, more valuable industrial company.
Commenting on the agreement, GE Capital chairman and CEO Rich Laxer said: “As we continue to sell most of the assets of GE Capital, we have worked with our joint venture partner, Hyundai, to find the solution that works best for all parties.
“We’re pleased that we were able to fully exit our stakes in Hyundai Card Co. Hyundai has been a great partner over the last 12 years providing value for customers.”
Earlier, GE announced that it is offloading most GE Capital assets and focusing on its high-value industrial businesses. GE will retain the financing businesses that relate directly to GE’s industrials.