Bank BPH will be now be transformed into two separate operating units, the Core Bank and the Mortgage Bank, followed by the spin-off and demerger of the Core Bank into Alior Bank.
The core bank will feature the non-mortgage banking assets of Bank BPH and the employees associated with those businesses.
The transaction represents ending net investment (ENI) of about $2.1bn as of fourth quarter of 2015 and is expected to release nearly $0.2bn of capital to GE.
GE will retain $3.9bn of mortgages in the mortgage bank unit and BPH TFI, the bank’s asset management business.
Most of Bank BPH’s employees and branch network will join Alior Bank as part of the agreement.
The transaction, which is expected to close in the fourth quarter of 2016, is subject to regulatory approvals.
The deal is part of GE’s plans to sell nearly $200bn worth of businesses globally. The company plans to complete the process by the end of this year.
GE Capital chairman and CEO Keith Sherin said: "As we continue to execute on our strategy to sell most of GE Capital’s assets, we are now primarily focused on European transactions.
"We are pleased to sell the Bank BPH’s Core Bank to Alior Bank, a well-respected bank in Europe which is committed to Bank BPH’s employees and to growing the Core Bank business.
GE expects to continue to identify buyers over the coming months for its other European commercial and consumer banking businesses.
Financial services provider State Street has recently agreed to acquire GE Asset Management for about $485m.
Image: Alior Bank has agreed to acquire GE Capital’s majority stake in Bank BPH’s Core Bank. Photo: courtesy of stockimages/FreeDigitalPhotos.net.
