Keppel Group completes sale of Keppel Bank (Phils) to GE Consumer Finance

The Keppel Group of Singapore completed Tuesday the sale of its 96.5-percent stake in Keppel Bank Philippines Inc. (KBP) to GE Consumer Finance (GECF), the global consumer lending unit of the General Electric Co.

GECF acquired 23.406 million shares in KBP from Keppel Bank from Keppel Corp. Ltd. and Keppel Philippines Holdings Inc. for P1.45 billion.

The move is part of the group’s strategy to divest its non-core assets.

The Keppel Group is engaged in offshore and marine, property and infrastructure businesses with global footprint in 27 countries.

Established in 1897, KBP is the oldest savings bank in the Philippines with total assets of approximately $90 million. It has 30 branches and provides a broad range of banking and financial services, including deposits, personal loans, mortgages, auto loans and credit cards.

The proposed transaction is subject to the approval of BSP and New York State Banking Department. Upon closing, GECF will assume operational control of the bank.

The Keppel group, through its associates, also completed the purchase from KBP of Keppel Centre, a 15-story office-cum-residential building in Cebu, for P260 million based on fair market value.

The sale of KBP and the purchase of Keppel Center is expected to raise the net tangible assets of Keppel Philippines Holdings by about P0.80 per share compared to the value as of June 30, 2005.

With more than $150 billion in assets, GECF is a leading provider of credit services to consumers, retailers, and auto dealers in 47 countries around the world.