Aegon N.V. today announced its subsidiary, Transamerica Finance Corporation (TFC), has successfully closed on the sale of most of TFC's commercial lending business to GE Commercial Finance, the business-to-business financial services unit of the General Electric Company. The agreement and its details were announced on 5 August 2003
The total payment of USD 5.4 billion results in an after tax gain of approximately USD 200 million under Dutch Accounting Principles, which will be added to shareholders’ equity directly. Proceeds will be used to redeem debt.
The closing of this transaction follows the sale of TFC’s real estate tax services and flood hazard certification businesses to The First American Corporation for USD 400 million on 1 October 2003. Both transactions are consistent with Aegon’s strategy to focus on its core business of life insurance, pensions and related savings and investment products.
TFC’s remaining businesses primarily consist of maritime container and European trailer leasing with total managed assets of approximately USD 2.1 billion as of 30 September 2003.