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Last Update: 23-Nov-12 08:16 ET
GM shares little changed following news that Ally will sell operations in Europe to GM Financial
Ally Financial 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 GM Financial), a wholly-owned subsidiary of General Motors (GM $24.60 +0.00). 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 this transaction. 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.
Ally Financial 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