Herbert Smith Freehills has advised the consortium of KKR, Värde Partners and Deutsche Bank on its financing of the A$8.2 billion acquisition of GE’s Australian and New Zealand consumer lending business.
GE’s consumer finance business has over three million customers in Australia and New Zealand and provides consumer financial products including credit cards, personal loans, consumer credit insurance and sales finance.
The acquisition was one of the largest private equity transactions to have ever occurred in Australia and New Zealand with a number of bidders competing to acquire the business.
The acquisition by the consortium is expected to facilitate growth in the Australian and New Zealand consumer finance market by supporting both existing and new customers and product growth.
Herbert Smith Freehills acted as legal advisers to the consortium, providing advice on debt financing matters. The team was led by Finance partner John Nestel, who was supported by special counsel, Laura Sheridan Mouton, senior associates Paul Apathy, Zina Edwards and Nikki Smythe, and solicitors, James Myint and Rosaline Yusman.
John Nestel said, “We are delighted to have acted for the winning consortium in respect of this major transaction for the Australian and New Zealand market, and look forward to working with the consortium in closing what will be a ground breaking financing package.
“Significantly, the acquisition of the substantial credit card business, and its related financing, will be the first transaction of its kind in the Australian market.”
The sale is part of a global divestment program by GE of its assets in the consumer lending space which have included the float of the US consumer finance business Synchrony, the disposal of a majority stake in Swiss consumer finance company Cembra Money Bank and the sale of consumer finance arms in Scandinavia. GE has stated that it intends to focus its business on key industries such as oil and gas, energy, healthcare, aviation and mining.
Other key advisers to the consortium included Ashurst in relation to the acquisition; HWL Ebsworth in relation to Australian consumer credit due diligence; Mayne Wetherell in relation to New Zealand law; Ernst and Young as tax advisers and Moelis & Co as financial advisers.
King and Wood Mallesons were legal advisers to GE Capital Finance Australasia Pty Ltd, and Credit Suisse and Morgan Stanley were the financial advisers.
Source: www.herbertsmithfreehills.com
