GE mulls portfolio carve-out from Bank BPH

The company is weighing several options for the sale of its majority stake in the Polish bank.

General Electric (GE) is mulling a full carve-out of a mortgage portfolio from the sale of its majority stake in Polish institution Bank BPH, a statement from the firm said. The mortgage portfolio would be comprised of foreign currency denominated assets.

The sale of the mortgage portfolio would not exclude a sale of the rest of the business as a going concern, a spokeswoman for the firm said.

The industrial conglomerate is weighing several potential transaction structures and has engaged advisors to assist in connection with the potential disposition of BPH including Morgan Stanley and Bank of America Merrill Lynch. It is in preliminary discussions with interested parties.

The Polish Financial Supervision Authority (Komisja Nadzoru Finansowego) has been advised by GE of the development.

GE announced on 10 April its decision to pursue the sale of most of its GE Capital business over the next two years in order to focus on growth of its industrial and manufacturing business.

Canada’s largest pension fund, Canada Pension Plan Investment Board (CPPIB), signed today an agreement to buy GE’s US private equity lending business, GE Antares Capital, for $12 billion.