April 19, 2024

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[THE INVESTOR] GE Capital plans to sell its entire 43 percent stake in Hyundai Card to Hong Kong-based private equity firm Affinity Equity Partners, according to media reports on Dec. 1.

Hyundai Motor Group, the largest shareholder of Hyundai Card, is in final talks with GE Capital and Affinity Equity Partners to complete the sell-off process, which is valued at around 800 billion won (US$683.04 million). The final contract is expected to be signed before the end of this year, next week at the earliest. 

Goldman Sachs and Morgan Stanley are managing the deal.

Once the deal goes through, it will put an end to the 12-year-old business partnership between Hyundai Motor Group and GE Capital -- which was established in 2004 by formation of two joint ventures, Hyundai Card and Hyundai Capital.

Earlier in October, GE Capital completed divesting its shares of Hyundai Capital, the auto conglomerate’s financial services arm, to Hyundai Motor.

The sale is in line with GE Capital’s restructuring efforts to focus on large industrial products by slimming down its consumer finance sector globally.

By Ahn Sung-mi (sahn@heraldcorp.com)