Anyone think GE's recent actions may be signaling a bottom in Japan?
(COMTEX) B: GE Capital to take 80 pc stake in Ryoshin Leasing
B: GE Capital to take 80 pc stake in Ryoshin Leasing
TOKYO, July 30 (Kyodo) -- In its latest foray into Japan's financial
market, GE Capital Services Corp. of the United States is in final
negotiations regarding an 80% stake in Ryoshin Leasing Corp., sources
familiar with the deal said Thursday.
Ryoshin Leasing, which is mainly owned by Mitsubishi Corp. and
Mitsubishi Trust and Banking Corp., would be the latest of a series of
acquisitions of Japanese financial service firms by GE Capital,
following its takeover of Lake Co., a consumer credit services company,
earlier this month.
If the deal goes through, Ryoshin Leasing would be owned by about 80%
by GE Capital, with Mitsubishi and Mitsubishi Trust owning the
remainder, the sources said.
The deal would give GE Capital a foothold in aircraft and machinery
leasing business, the areas that Ryoshin Leasing is primarily engaged
in.
The three parties are expected to make a formal announcement on the
deal as early as Friday, after final negotiations involving Gary Wendt,
chairman and chief executive officer of GE Capital, and Mitsubishi
Corp. Chairman Minoru Makihara, the sources said.
Makihara returns home Thursday evening from an overseas business trip,
they said.
Mitsubishi Corp. and its group companies now own 51.8% of Ryoshin
Leasing, while Mitsubishi Trust and its affiliates own 34.5%. The
remainder is owned mainly by other Mitsubishi group companies,
including the Bank of Tokyo-Mitsubishi.
Mitsubishi Corp. and Mitsubishi Trust, as the two largest shareholders
in Ryoshin Leasing, expect to purchase shares held by other Mitsubishi
group companies for sale to GE Capital for several tens of billions of
yen, the sources said.
GE Capital Services, the finance arm of General Electric Co., is the
world's largest nonbank finance company, and has been expanding in
Japan's financial market since 1994.
Besides taking over Lake, GE Capital set up a life insurance company in
a tie-up with Toho Mutual Life Insurance Co. this year.
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