Ally Financial Announces Agreement to Sell Canadian Operations

 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  shareholder value.  "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 or follow Ally on Twitter: @Ally.  Contact:  Gina Proia 646-781-2692  SOURCE: Ally Financial Inc.  To view this news release in HTML formatting, please use the following URL:  CO: Ally Financial Inc. ST: Michigan NI: FIN  
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