Second transaction in a week toward goals of pursuing strategic alternatives
for the international businesses
DETROIT, Oct. 23, 2012 /CNW/ - Ally Financial Inc. (Ally) today announced that
it has reached an agreement to sell its Canadian auto finance operation, Ally
Credit Canada Limited, and ResMor Trust to Royal Bank of Canada (RBC),
Canada's largest bank by assets and market capitalization. The transaction is
subject to regulatory approval and is expected to close in the first quarter
of 2013. Ally will receive an approximately $620 million USD premium to book
value, which for the third quarter of 2012 was approximately $3.5 billion.
Based on the third quarter total equity for the Canadian operations, Ally
would receive approximately $4.1 billion USD in proceeds from this transaction.
"This transaction represents another significant step toward our plans to
pursue strategic alternatives for our international operations and accelerate
plans to repay the remaining U.S. Treasury investment," said Ally Chief
Executive Officer Michael A. Carpenter. "The Canadian transaction is the
second transaction in a week to support these goals. We continue to evaluate
options for our remaining international operations in Europe and Latin
America, and we are encouraged by the progress and interest in the businesses."
Carpenter continued, "Our international operations are strong franchises, and
both the ABA Seguros and the Canadian transactions demonstrate our goals of
finding the best solutions for those businesses, while also maximizing
"Successful execution of the international transactions will enable Ally to
further strengthen and grow our leading U.S.-based automotive services and
direct banking franchises, and we remain focused on achieving those goals."
Ally's remaining international businesses include automotive finance
operations in Europe and Latin America. The company expects to identify plans
for these operations in November.
Ally's Canadian operations are based in Toronto and represent the largest
single country of operations outside the U.S. with $13.6 billion in assets at
the end of the third quarter 2012. The operations consist of Ally Credit
Canada Limited and ResMor Trust, both subsidiaries of Ally.
Ally Credit Canada Limited is one of the largest auto finance companies in
Canada with approximately $9.4 billion in assets at the end of the third
quarter 2012. The business offers automotive financing and related services
to dealers and their customers.
ResMor Trust offers deposit products through independent brokers as well as
innovative savings products directly to consumers. ResMor had $3.8 billion in
deposits and $4.2 billion in assets at the end of the third quarter 2012.
Royal Bank of Canada (RY on TSX and NYSE) is among the largest banks in the
world, based on market capitalization. It is North America's leading
diversified financial services company, and provides personal and commercial
banking, wealth management services, insurance, corporate and investment
banking and investor services on a global basis.
About Ally Financial Ally Financial Inc. is a leading automotive financial
services company powered by a top direct banking franchise. Ally's automotive
services business offers a full suite of financing products and services,
including new and used vehicle inventory and consumer financing, leasing,
inventory insurance, commercial loans and vehicle remarketing services. Ally
Bank, the company's direct banking subsidiary and member FDIC, offers an array
of deposit products, including certificates of deposit, savings accounts,
money market accounts, IRA deposit products and interest checking. Ally's
Commercial Finance unit provides financing to middle-market companies across a
broad range of industries.
With approximately $179 billion in assets as of June 30, 2012, Ally operates
as a bank holding company. For more information, visit the Ally media site at
http://media.ally.com or follow Ally on Twitter: @Ally.
Contact: Gina Proia 646-781-2692 firstname.lastname@example.org
SOURCE: Ally Financial Inc.
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-0- Oct/23/2012 12:10 GMT
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