Ally Financial Announces Agreement to Sell Remaining International Operations
DETROIT, Nov. 21, 2012
DETROIT, Nov. 21, 2012 /PRNewswire/ --
oFinal sale transaction toward strategic plans to repay U.S. Treasury
oCompany focused on further strengthening the U.S. auto finance and direct
Ally Financial Inc. (Ally) today announced that it has reached an agreement to
sell its operations in Europe and Latin America, as well as its share in a
joint venture in China, to General Motors Financial Company, Inc. (GM
Financial), a wholly-owned subsidiary of GeneralMotors Co. The transaction is
subject to regulatory approvals and is expected to close in stages during
2013.Ally will receive an approximately $550 million USD premium to tangible
book value, which for the third quarter of 2012 was approximately $3.7
billion.Based on the third quarter tangible book value for the combined
operations, Ally would receive approximately $4.2 billion USD in proceeds from
"In May, we began a process to pursue alternatives for our international
operations in an effort to accelerate repayment plans for the U.S. Treasury's
remaining investment," said Ally Chief Executive Officer Michael A.
Carpenter."This transaction represents the third and final agreement in
recent weeks toward those goals, and, combined, these sales are expected to
generate approximately $9.2 billion in proceeds."
Carpenter continued, "Our goals were to find the best solution for each of the
businesses, while also maximizing shareholder value, and we believe those
goals have been achieved.Next, we are focused on completing each of these
transactions and evaluating options to return capital to the U.S. Treasury.
"Going forward, we remain squarely focused on further strengthening and
growing our leading U.S. automotive services and direct banking franchises,"
said Carpenter."We have strong momentum in these businesses, and continued
successful execution of our strategic plans will enable these operations to
The transaction includes auto finance operations in Germany, the U.K.,
Austria, France, Italy, Switzerland, Sweden, Belgium, the Netherlands,
Luxembourg, Brazil, Mexico, Colombia and Chile, as well as a 40 percent equity
stake in a joint venture in China.The combined operations in Europe and Latin
America represented approximately $16.1 billion in assets at the end of the
third quarter 2012.
In October, Ally announced agreements to sell its Mexican insurance
subsidiary, as well as its auto finance and deposit businesses in Canada.With
the agreement to sell the operations in Europe, Latin America and the joint
venture stake in China, Ally will have effectively exited the international
markets.In total, these transactions are expected to generate proceeds of
approximately $9.2 billion, based on third quarter 2012 tangible book value of
$7.6 billion, which reflects a premium of approximately $1.6 billion, or 21
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 online checking. Ally's Commercial Finance
unit provides financing to middle-market companies across a broad range of
With approximately $182 billion in assets as of Sept. 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.
SOURCE Ally Financial
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