SBI, Carlyle to jointly acquire GE Capital’s stake in SBI Card
22 Jul 2017
India's largest lender State Bank of India and global PE major The Carlyle Group have signed definitive agreements to acquire the entire stake held by GE Capital Group in SBI Card.
SBI is the second-largest credit card franchise in India. The financial terms of the transaction were not disclosed.
Following the transaction, SBI and Carlyle will own 74 per cent and 26 per cent respectively in each of the two entities, the companies said in a statement.
''We look forward to the new partnership capitalising on the significant opportunities that are opening up in the Indian market, especially in these interesting times of majorly cashless transactions,'' Dinesh Kumar Khara, managing director, (A&S), SBI, said.
SBI Card is operated through two joint-venture companies, SBI Cards & Payment Services and GE Capital Business Process Management Services, which issue credit cards and process card transactions in the Indian market.
The transaction is expected to close by the fourth quarter of 2017, subject to regulatory approvals.
''As we near the end of the process of selling most of the assets of GE Capital, we have worked with our joint venture partner, State Bank of India, to find a solution that works best for all parties,'' said Rich Laxer, GE Capital Chairman and CEO.
''We're pleased that we were able to fully exit our stakes in SBI Card and the card processing company. State Bank of India has been a great partner over the last 19 years providing value for customers and we're certain that will continue in the new partnership with Carlyle,'' he added.
As announced in April 2015, GE is focusing on its high-value industrial businesses and is selling most GE Capital assets. GE has retained the financing businesses that relate directly to GE's industrials.
Since the announcement, GE Capital has signed and closed agreements for the sale of about $200 billion of businesses. Carlyle has invested about $1.6 billion of equity in more than 30 transactions in India across all Carlyle funds as of March 31, 2017.