Acquisition To Accelerate GE Money's Growth into a Top 5 Bank in Poland
WARSAW, POLAND, August 3 /CNW/ - GE Money, the global consumer lending
unit of General Electric (NYSE: GE) announces that it has today signed an
agreement with UniCredit regarding the acquisition, by GE Money, of Bank BPH,
which will be completed following the completion of the spin-off of a portion
of Bank BPH's business to Bank Pekao (referred to hereafter as "New BPH").
The spin-off of a portion of the business of Bank BPH into Bank Pekao has
already been approved by the shareholders' meetings of both banks and is
subject to the consent of the Polish Banking Supervision Commission.
Under the terms of the agreement, GE Money will acquire close to 66% of
the shares of New BPH from UniCredit. The transaction envisages also the
future acquisition by GE Money of 49.9% of BPH TFI (BPH's asset management
unit) that Bank BPH does not already own from CABET Holding, a wholly owned
subsidiary of Bank Austria Creditanstalt (part of the UniCredit Group).
The total consideration for these transactions is $854.9 million (EUR
625.5 million). As of 31 December 2006, New BPH had pro forma total assets of
$2.9 billion (EUR 2.2 billion), net loans of $1.8 billion (EUR 1.4 billion),
deposits of $1.6 billion (EUR 1.2 billion) and shareholders equity of $0.5
billion (EUR 0.4 billion). BPH TFI had assets under management of $2.4 billion
(EUR 1.8 billion) for the same period.
The transaction is subject to a number of conditions precedent, including
regulatory and competition approvals, and is expected to close by the end of
As a result of this transaction, GE Money will have access to New BPH's
universal banking infrastructure and network of around 200 branches. New BPH
and GE Money's existing business in Poland will have a complementary and
well-diversified network (together, around 330 outlets by the end of 2007),
positioning GE Money as a top five bank in the market by assets. Jointly, the
businesses will have staff of approximately 6,900 offering a broad range of
products. Total assets will be approximately $7.3 billion (EUR 5.5 billion).
New BPH will continue to be led by Joseph Wancer, its Chairman and CEO.
The transaction executes GE Money's core strategy in Central & Eastern
Europe of investing and building scale in key strategic, developing and high
growth markets such as Poland. It will accelerate the transformation of GE
Money into a universal bank in this market. GE Money already operates
universal banks in the EMEA region in the Czech Republic and Hungary and with
its partner the Dogus Group in Turkey has a majority shareholding in Garanti
Bank, Turkey's third largest private bank.
Commenting William H. Cary, President and CEO of GE Money EMEA said; "We
are delighted that we have successfully reached an agreement on the
acquisition of New BPH.
This investment presents an excellent opportunity for us to expand our
presence in the Polish market, gain significant scale and accelerate our
transformation into a universal bank. GE Money Bank has a great track record
of growth in Poland.
This investment is an indication of our long-term commitment to the
market and a vote of confidence in the future prospects for the Polish
economy. New BPH is a great business with a great team of people; together we
look forward to building a great business."
GE Money has grown strongly in Europe over the past decade since it first
established a presence in 1992 with the acquisition of its UK business. It
currently operates across 25 markets in the EMEA region employing over 24,000
people. In Central & Eastern Europe, GE Money has been present since the
acquisition of Solidarnosc Chase DT Bank in 1995, and currently has existing
banking and consumer finance operations in Poland, Czech Republic, Hungary,
Romania, Russia, Slokavia and Turkey. GE first established a presence in
Poland in 1992 and today employs 6,000 people in the market operating across a
range of sectors including consumer finance, media and technology.
About GE Money
GE Money, a unit of General Electric Company, with $190 billion in
assets, is a leading provider of credit services to consumers, retailers and
auto dealers in 55 countries around the world. GE Money, based in Stamford,
Conn., offers a range of financial products globally, 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 online at
GE Money EMEA
GE Money first established a presence in EMEA in 1992. Today GE Money
operates in 25 countries in the region and employs over 24,000 employees. GE
Money EMEA has assets of $88.7 billion (2006) and net income of $1.6 billion.
The region accounts for approximately 45% of the total global assets of GE
GE Money Bank, Poland
GE Money Bank, Poland was established in January 2005 as a result of the
merger of GE Capital Bank and GE Bank Mieszkaniowy (Housing Bank). GE Money
Bank offers personal loans, auto loans, used cars financing program (GEpard),
mortgages, credit cards, sales finance products, commercial loans and
investment fund units. Headquartered in Gdansk, GE Money Bank offers its
products and services throughout a network of branches, agents, brokers,
dealers and developers co-operating with GE Money Bank, as well as in retail
networks. GE Money Bank employs almost 4,000 people in Poland. More
information is available at www.gemoneybank.pl
For further information:
For further information: GE Money EMEA Hugh Gillanders, +353 87 2901511
Vice President - Communications firstname.lastname@example.org or GE Money Bank,
Poland Aleksandra Kwiatkowska, +48 22 545 7890 Communications Director