NETHERLANDS/US - The Dutch life insurer and pensions provider, Aegon, will sell of most its Transamerica Finance Corporation's (TFC) commercial lending business, in order to focus on its core retirement business.
GE Commercial has agreed to the purchase of the division for US$5.4bn and the transaction is expected to close before year end 2003.
The sale price represents a premium over net receivables of US$ 0.3bn and results in an after tax book gain of around US$0.25bn under Dutch accounting principles, which will be added directly to shareholders’ equity.
Under the terms of the agreement, Aegon will sell all of those TFC business units that provide distribution financing for manufacturers and dealers, as well as equipment financial services and speciality finance units that engage in leasing and commercial loan financing for equipment, real estate, technology companies and international structured finance.
The transaction covers US$8.5bn of managed assets and includes the repayment of US$3.8bn of TFC’s debt. Approximately US$2.4bn of this debt has been provided internally by Aegon.
The units which are being sold were acquired in 1999 as part of Aegon NV’s purchase of TFC, and included approximately 1,700 employees which serve customers primarily in North America and Europe.
Andy Palmer says trustees and employers should prepare for a no deal, which could pose big risks to sponsor covenants
The government has rejected the Treasury Committee's call for fundamental and incremental changes to pensions tax relief, noting there is "no clear consensus".
BlackRock has won over a quarter of a £109bn Scottish Widows mandate following a competitive tender process, as the battle for the remaining £79bn in assets continues.