PARIS, FRANCE: Societe Generale’s Board of Directors has approved the signing of a Memorandum of Understanding with Groupe BPCE for the divestment of the professional equipment financing businesses operated by Societe Generale Equipment Finance (SGEF).
Groupe BPCE would take over most of Societe Generale Equipment Finance activities, which offer tailor-made financing and leasing solutions for distributors, traders, manufacturers and companies.
SGEF deploys its expertise internationally in the transport, industrial equipment, technology, medical and renewable energy sectors. The outstanding loans of the businesses covered by the Memorandum of Understanding amount to almost €15 billion at the end of December 2023, i.e. around €8 billion in risk-weighted assets (RWA).
This divestment project would mark an important step in the execution of Societe Generale’s strategic roadmap presented in September 2023, targeting a streamlined, more synergetic and efficient business model, while strengthening the Group’s capital base.
This transaction would be done at a price of €1.1 billion and would have an estimated positive impact of approximately 25 basis points on the Group’s CET1 ratio at the completion date which should occur in the first quarter of 2025.
Slawomir Krupa, Chief Executive Officer of Societe Generale Group comments: “During the presentation of the Group’s strategy in September 2023, we affirmed Societe Generale’s ambition to be a rock-solid and sustainable top tier European bank.
We announced that the Group would take strategic decisions to simplify its business portfolio and shape a more integrated, competitive and synergetic business model. The signing of the Memorandum of Understanding with Groupe BPCE for the sale of SGEF’s activities illustrates the strategic roadmap’s execution that creates value for all our stakeholders.”
For Odile de Saivre, Chief Executive Officer of Societe Generale Equipment Finance: “Within Societe Generale, SGEF has developed its international activities to achieve a unique geographical coverage.
SGEF’s employees are recognized experts who work with our customers and partners to build innovative equipment financing solutions. With the proposed Groupe BPCE project, I am delighted to open a new chapter firmly oriented towards growth, thanks to the strong alignment of our activities.”
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