GE pays $1.7 billion to Shinsei, reducing exposure
FAIRFIELD, Connecticut (AP) — General Electric will pay $1.7 billion to Japan’s Shinsei Bank Ltd. to end its obligation to cover interest refund claims.
GE was required to make the payments as part of the sale of its Japanese consumer finance operations. The sale agreement allowed for a buyout option this year. General Electric Capital Corp. sold the operations to Shinsei for $5.4 billion in September 2008.
Because of the buyout, GE’s fourth-quarter and 2013 earnings will be trimmed by 9 cents per share, the company said Wednesday. First-quarter and 2014 results will not be impacted.
Shares of General Electric Co., based in Fairfield, Connecticut, shed 14 cents to $25.13 in Wednesday morning trading.