international news > IN BRIEF
GE MAY SELL OFF CONTAINER LEASING GE Capital continues to review its portfolios, and to optimise its positioning. It is known that GE SeaCo, which is 50 percent owned by GE Capital, appointed Deutsche Bank some months back to review strategic alternatives. The result is this year that it has taken the first steps towards a sale process with a series of presentations to potential buyers. The market is guessing at a consideration of about $2.5 billion. The container leasing industry has been booming, since manufacturers in China stopped producing containers during the downturn, creating a shortage in 2010 when the economy recovered and trade picked up, while rising steel prices have been pushing up the price of new and used containers. GE SeaCo has the fifth-largest container fleet in the industry with about 870,000 units. Cargo volumes continue to rise and major players in the market are trying to buy as many containers as they can. So, why are GE looking to sell if it’s all so buoyant? They say its no longer core business. Although transportation looks like core business, given GE’s investment in aircraft and rail, it may be that container leasing has the least potential for future technological innovation or relevance to green or energy technology, and GE has recently been emphasising that it’s future lies in that direction. Also, GE SeaCo is not in the number one or two slots, where GE likes to be. But, if no sale were to materialise, there’s nothing lost, as the business continues to make a good profit.
STANDARD CHARTERED
Standard Chartered Bank will be buying GE Capital’s Singapore automotive financing arm, for around a billion Singapore dollars. The business is said to have of 2.35 times that
amount. Dmitri Stockton,
he overall MCI-EFI is 69.7, an increase from the December index of 64.8. When asked to assess if their current business conditions would remain the same over the next four months, 52.6 percent of executives responding said they believe business conditions will improve over the next four months, an improvement from 47.5 percent in December. Depending on the market segment they represent, executives have differing points of view on the current and future outlook for the industry. Bank, Large Ticket: “2011 should see an increased demand for equipment financing with the improving economy.” Bank, Middle Market: “Confidence in the economy and business climate appears to be improving, with increased interest and volume of business noted in December. The transaction pipeline is reflecting growth over last year, and the first quarter forecast projects an increased capital expenditure appetite by customers for replacement and new equipment.” Independent, Small Ticket: “As employment growth goes, so will demand for equipment. Capital will be plentiful for companies that adjust to lower leverage ratios. There still are opportunities to be rewarded for taking equipment and credit risk assuming these
January leasing confidence up slightly T
> 52.6 PERCENT OF EXECUTIVES SAID THEY BELIEVE CONDITIONS WILL IMPROVE
risks are well managed.” Independent, Micro-Ticket: “The small and micro business climate continues to be guarded. Recovery in these sectors is lagging that of larger companies.”
New heads at Foundation T
he Equipment Leasing & Finance Foundation (“ELFF”) has named
chief
executive of GE Capital Global Banking, said the transaction was “in line with GE Capital’s strategy to optimise its portfolio. We believe it is the right outcome for the business, its employees, and our shareholders.” GE Capital has continued its recovery from the financial crisis by selling non-core assets.
William G. Sutton, CAE, as its new President, and Kelli Jones Nienaber as its new Executive Director. Sutton, who is currently President and CEO of the Equipment Leasing and Finance Association (“ELFA”), will retain that role and will also serve as President of the Foundation.
The Foundation was created by ELFA in 1989 to carry out the charitable, educational and scientific purposes of the association and is best known for its forward-looking, independent industry research.
30
Nienaber will serve as a member of
the ELFA senior management team. She will be the primary conduit to the Foundation’s Board of Trustees and governance committees and will oversee the day-to-day programs and business of the Foundation. Nienaber has been with ELFA since 2006, most recently serving as Director of Government Relations and Membership. In this position, she managed the political programming of the ELFA, including the grassroots advocacy and the political action committee, LeasePAC. She also led ELFA's efforts to recruit, retain and renew its members.
www.leasingworld.co.uk ■ March 2011
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