GE Money Bank to list shares on Swiss exchange by year end
ZURICH Oct 3 (Reuters) - GE Capital will float a majority stake in its Swiss consumer finance unit GE Money Bank in the fourth quarter as part of a retreat from the sector to focus more on industrial interests.
GE Money Bank, which will be renamed Cembra Money Bank following the initial public offering (IPO), said on Thursday it would list all 30 million of its shares on the SIX Swiss exchange but GE Capital would keep a sizeable minority stake.
The listing price and the number of shares offered for sale have yet to be determined.
"The IPO of GE Money Bank is another important step in focusing GE Capital's operations and is consistent with GE's broader strategy to shift its earnings mix to 70 percent industrial and 30 percent financial," Richard Laxer, President and CEO of GE Capital International said in a statement.
GE Money Bank said GE Capital would keep its minority stake for a period of one year and would reduce it over time.
GE Money Bank also said it would receive funding of 1 billion Swiss francs ($1.1 billion) for five years from GE Capital to refinance an existing credit facility and would draw a 450 million franc three-year loan from a consortium of international banks.
Proceeds from new stock listings have risen 14 percent this year globally but the Swiss market has remained muted.
Credit Suisse has been appointed global coordinator and joint bookrunner, and BofA Merrill Lynch and Deutsche Bank as joint bookrunners for the GE Money Bank offering.
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