SEOUL (Reuters) - Three private equity firms are bidding for General Electric's 43 percent stake in its South Korean credit card joint venture, Hyundai Card, in a deal that may be worth more than 600 billion won (411.7 million pounds), Invest Chosun reported on Tuesday.
Hong Kong-based private equity firm Affinity Equity Partners and PAG are among the three bidders and GE Capital plans to complete the stake sale by year-end, the report said, citing investment banking sources. It said GE has hired Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) to manage the deal.
GE is planning to divest stakes in its two South Korean businesses it partners with Hyundai Motor - Hyundai Card and Hyundai Capital, as the U.S. conglomerate continues to trim its exposure to the financial services sector.
A Hyundai Card spokesman was not available for comment. A public relations representative in Seoul for Affinity declined to comment.
In December, GE agreed to sell a 23.3 percent stake in Hyundai Capital, an auto-financing firm for 703 billion won. GE seeks to sell out of a remaining 20 percent stake in the unlisted lender to a third party.