This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ally Financial Announces Agreement To Sell Remaining International Operations

DETROIT, Nov. 21, 2012 /PRNewswire/ --

  • Final sale transaction toward strategic plans to repay U.S. Treasury
  • Company focused on further strengthening the U.S. auto finance and direct banking franchises

Ally Financial Inc. (Ally) today 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 General Motors Financial Company, Inc. (GM Financial), a wholly-owned subsidiary of General Motors Co. 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.    

"In May, we began a process to pursue alternatives for our international operations in an effort to accelerate repayment plans for the U.S. Treasury's remaining investment," said Ally Chief Executive Officer Michael A. Carpenter. "This transaction represents the third and final agreement in recent weeks toward those goals, and, combined, these sales are expected to generate approximately $9.2 billion in proceeds."

Carpenter continued, "Our goals were to find the best solution for each of the businesses, while also maximizing shareholder value, and we believe those goals have been achieved. Next, we are focused on completing each of these transactions and evaluating options to return capital to the U.S. Treasury.

"Going forward, we remain squarely focused on further strengthening and growing our leading U.S. automotive services and direct banking franchises," said Carpenter. "We have strong momentum in these businesses, and continued successful execution of our strategic plans will enable these operations to further thrive." 

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,070.40 +46.34 0.26%
S&P 500 2,114.49 +6.20 0.29%
NASDAQ 5,016.9290 +11.5380 0.23%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs