GE Fin may sell stake in arm to IDBI, IDFC

ources close to the development confirmed the move and said that GE is all set to hive off its construction equipment finance business into a separate Rs 650-800 crore joint venture company and is in talks with IDFC and IDBI for the same. When contacted, the GE spokesperson said: “We treat our business and customer discussions with high confidentiality and are unable to disclose any details.” An IDBI senior official did not respond to the queries sent by ET. ET was the first to report that IDFC is in talks to acquire around 35% in GE’s construction equipment finance business and that the process pertaining to the transaction should have ideally been completed by the middle of the year. “Talks were initiated in the beginning of the current year but the slowdown in global markets and the current turmoil in financial services sector led the delay in the agreement. It may take some time for the final deal to come through,” said a source. IDBI was set up in July 1964 to provide credit and other facilities for the development of the Indian industry. IDBI offers a wide range of products and services, including deposits and loans, while IDFC is meant to facilitate financing infrastructure projects in the private sector in areas of power, roads, ports and telecommunications. Apart from infrastructure financing, the firm is also into asset management and investment banking. GE Commercial Finance, globally, has assets of over $335 billion. It caters to industries, including healthcare, manufacturing, construction, infrastructure and equipment, among others. The company’s real estate portfolio spans across all market segments — from industrial, commercial and office space to residential and recreational developments